DSI 2009Q2 profit Dh90m

[sharewadi]

Drake and Scull announced 2009 Q2 Net Profit of AED 90 million this afternoon. No comparison figures for 2008 Q2 supplied or known but it was a 15% increase on 2009 Q1. DSI shares rose 3.5% to AED 0.88 today, but results not released until after close of market. See next post for press release.

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[sharewadi]

Press Release 30 July 2009:

DSI Announces Financial Results For the Second Quarter of 2009 Reports AED 90Million net profit for Q2 2009, a QoQ increase of15% Results reflect successful company strategy with focus on judicious investments and regional expansion Dubai: Drake & Scull International PJSC (DSI) has announced its consolidated financial results for the second quarter of the current fiscal year. DSI's Board of Directors approved the financial results today, which reflect a solid growth trajectory, reporting a consolidated quarterly net profit of AED 90 million, a quarter-on-quarter growth of 15% and a total net profit of AED 168 Million for the first six months of the year. The company reported AED 512 Million net revenues for the second quarter, a quarter-on-quarter increase of 5%. This brings DSI's consolidated net revenues to AED 1 Billion for the first half of 2009. Earnings per share for the first half of 2009 are AED 0.08. Khaldoun Tabari, DSI Vice-Chairman and CEO, said: "DSI's ability to anticipate change and adapt to the transforming market dynamics ahead of time, has enabled us to produce strong financial results, in a contradictory economic scenario. The strong foundation we laid in focusing on creating customer value through integrated service offerings have enhanced our readiness to execute in the long term." "Our financial results also support our inorganic growth strategy, judicious investments, and focus on regional expansion. In the coming months, DSI will announce many mutually beneficial alliances that will further enhance our shareholder value." Tabari reiterated that DSI's expansion strategy was on track, confirming that announcements on potential acquisitions across the Middle East should be expected later this year. "I believe that our financial results will infuse positivity into the market given the bleak economic scenario, especially for the construction and reality sector, DSI's results are not only encouraging, but also have the potential to uplift the investor mood." DSI's existing projects in the GCC continued as normal and further growth announcements around the company's projects in the region could also be expected in the near future. Khaled Jarrar, DSI's Chief Financial Officer, said "DSI's good second quarter results demonstrate stability, growth and our commitment to enhance value for our shareholders, clients, staff, and investors. Our consistent results each quarter are an indication that DSI has strong fundamentals and is dedicated to providing shareholder value through its comprehensive range of service offerings and diverse business portfolio." "DSI has a robust business model and futuristic development strategy that will accelerate our growth and assist us in seeking positive yields." According to Jarrar, the second quarter results are a reflection of the management's successful approach of managing the current economic conditions which has contributed greatly in allowing the company to sidestep the current challenges facing the industry. Jarrar said that managing operating costs remain a key priority to strengthen DSI's capital position and shareholder value. From its public listing, DSI accumulated approximately AED 1.24 billion funds, which the company plans to leverage for inorganic growth through regional acquisition The company is currently evaluating potential acquisitions in similar sectors in Saudi Arabia, Qatar and Kuwait. DSI is the only specialist contractor listed on the Dubai Financial Market (DFM).

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[sam111sam]

8 Fils per share for 1H, if we assume similar performance in 2H then 16 Fils for 2009 or P/E of 10.5
ARTC P/E is 5 (double the profitability)

The only poosible advantage for DSI is the cash (they still have 80% of the IPO income in cash). Let's see how will they use the cash to increase profitabilty ?

[thajuddeen]

[sam111sam]