Drake & Scull International, a regional leader in engineering and construction services, has achieved an overall net profit of Dh7 million ($1.9 million) for the first quarter, compared to the net loss of Dh839 million ($228 million) declared during the same period last year.

Announcing the first quarter results, the Dubai contractor said the overall revenue stood at Dh693 million compared to Dh796 million achieved in the same period last year.

The company also reported a gross profit of Dh101 million compared to the gross loss of Dh49 million reported last year as well as an operating profit of Dh45 million in the first three months versus an operating loss of Dh812 million reported the previous year.

DSI’s total project backlog stood at Dh5.4 billion, supported by the Dh305 million worth of projects secured primarily in the home market (UAE) since this January.

Drake & Scull International said the improved results were mainly due to the positive momentum achieved in the first quarter. Core metrics related to operational performance across key markets and segments showed signs of business stabilization, it stated.

Through its ongoing business rationalisation drive, the company also unlocked additional value in key areas, which were previously impaired by the impact of legacy issues on certain projects, it added.

On the solid performance, Rabih Abou Diwan, the 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," remarked Abou Diwan.

"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," he added.-TradeArabia News Service