Drake & Scull International on Monday reported an increase in the revenue in the third quarter of this year to Dh869 million, compared to the Dh434 million revenue it reaped in the same period last year.
The regional engineering and services company managed to narrow its losses to Dh81 million in the third quarter of this year compared to Dh985 million in net loss in the third quarter of 2015.
The company attributed losses to prolonged weakness of the construction sector in key markets such as Saudi Arabia, Qatar, and -to a lesser extent — the broader GCC and Middle East regions.
There were also operational delays of certain on-going projects and a slower backlog execution in the Saudi Arabia and the Levant region resulting in cost overruns particularly in the civil sector, the company said.
For the first nine months of the year, the company reported revenues of Dh2.7 billion compared to revenue of Dh2.8 billion in the same period last year and a net loss of Dh297 million compared to Dh951 million reported last year.
Revenues from the UAE market reported for the third quarter were Dh387 million compared to Dh245 million up 58% year-on-year, and Dh1,083 million for the nine months period ending 30 September 2016 compared to Dh905 million, up 20% year-on-year.
Wael Allan, CEO, Drake & Scull International said: “Our order backlog is slowly moving towards a higher-value, higher-margin portfolio of projects with a focused geographical diversification, predominately in the UAE. Our disciplined approach over the past six months is shaping a leaner, more adaptable company.”