Drake & Scull International has returned to profit in the first quarter following a management shake-up and a series of financial reforms.
The Dubai-listed contractor, which specialises in MEP work, booked a net profit of AED 7mn ($1.9mn) for the first three months of 2018, overturning a loss of AED 839mn declared during Q1 2017.
Overall revenue in the first quarter fell to AED 693mn as compared to AED 796mn achieved in Q1 2017.
The company also reported an operating profit of AED 45mn for the period versus an operating loss of AED 812mn in Q1 2017.
DSI’s total project backlog stood at AED 5.4bn, supported by the AED 305mn worth of projects secured primarily in the home market of the UAE since the turn of the year.
Rabih Abou Diwan, Investor Relations Director, said: “We are pleased to start the financial year with a return to profitability. The various reforms implemented by the new management have added significant strategic and operational impetus, in terms of efficiency and productivity measures achieved during the quarter.
“We will continue to leverage the synergies across our operating segments to improve our operating performance by reducing our overheads and by recalibrating our services portfolio to drive margin accretion.”
“Our target is to sustain our quarterly performance across all operating segments and key markets throughout the fiscal year and to secure profitable projects with our key strategic clients in the region.”