DSI announces $59m net profit for fiscal year 2011

Increased momentum in project execution led top line growth says CFO

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Khaldoun Tabari says 2012 will see DSI expand into Asia and Africa. Picture: Getty Images
Khaldoun Tabari says 2012 will see DSI expand into Asia and Africa. Picture: Getty Images

Drake and Scull International announced on Monday that it had recorded a net profit of $59.86m for the fiscal year of 2011, ending December 31.

Together, the multiple disciplines of the company, which include MEP, Civil Contracting and Water and Power, reported total revenues of $843.9m, a 68% growth from the previous year’s figures. Net profit increased by 36%.

“2011 has been a year of growth and consolidation for the company as we have acquired, over the last two years, four companies that have significantly contributed to top line and bottom line growth. Our aim in 2012 is now to sustain our growth in the MENA region and to pursue our expansion plan in Asia,” said Khaldoun Tabari, CEO of DSI.

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DSI’s total project awards announced in 2011 amounted to $1.19bn in comparison to $925.6m in 2010. The company’s order backlog reached a record high of $1.93bn, which represented a year over year increase of 43%.

Osama Hamdan, chief financial officer of DSI, said the company’s top line growth could be attributed to its increased momentum in project execution, which was indicative of its ability to secure more contracts in the region.

“The increase of profits is a testament of our commitment to cost reduction, our efficiency and diligence in project execution. Our focus remains on cost control and collections to ensure a healthy cash flow to maintain our strong balance sheet,” he explained.

“The civil business was a major contributor to the revenues and we expect this trend to continue in 2012. We are confident that the secured backlog will guarantee steady revenue streams for the company to pursue its expansion plans in emerging and developing markets such as Asia and Africa,” he added.

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