(MENAFN- Khaleej Times) Drake & Scull International, a regional leader in engineering and construction services, said on Wednesday that it returned to profitability in the fourth quarter of 2017 on the back on an increase in revenue by 11 per cent.
The company said its preliminary unaudited financial results for the quarter showed a pick-up in project performance with the overall quarterly revenue increasing to Dh656 million compared to the preceding quarter.
The company reported a net profit of Dh700,000 for the fourth quarter compared to a net loss of Dh359 million recorded in the previous quarter.
DSI said its total projects backlog stood at Dh5.5 billion, supported by Dh494 million worth of new projects in the MEP and water treatment sectors secured in the UAE and Saudi Arabia during the fiscal year.
"The DSI management continues to lay the foundation for an improved and sustained operational and fiscal performance, with a renewed focus on DSI's core MEP business in its key markets in the UAE and Saudi Arabia," the statement said.
The company said it remains committed towards the realisation of the recovery objectives set forth by the new leadership team appointed in the last quarter of 2017 to steer the company back to recovery and growth. Several organisational restructuring initiatives were executed in the quarter to streamline operations, reduce cost and improve efficiency. The company continues with its operational review across key markets and is undertaking key measures to mitigate contingent exposure of legacy projects.
The group said it is also accelerating projects bidding in key markets across all sectors and is undertaking several proactive measures to regain market share and restore its leadership in the region.
In 2017, DSI underwent a revamping of its management and successfully completed its capital restructuring programme.
Under the programme, DSI proposed to write off 75 per cent of its shares to erase Dh1.71 billion in losses, followed by the Dh500 million capital infusion by Tabarak Investment, currently DSI's biggest investor.
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Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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