Drake & Scull Reports Q1 2025 Profit Turnaround
Drake & Scull International PJSC has announced a return to profitability in Q1 2025, marking a significant turnaround from the previous year's losses.
Summary
Drake & Scull International PJSC reports AED 2.5 million net profit in Q1 2025, marking a significant turnaround from a net loss of AED 42.5 million in Q1 2024.
Drake & Scull International PJSC (DSI), a regional leader in contracting services for mechanical, electrical, and plumbing (MEP), as well as oil and gas, water, and wastewater treatment projects, has reported a notable financial turnaround in the first quarter of 2025. The company recorded a net profit of AED 2.5 million, a remarkable recovery from a net loss of AED 42.5 million in the same period last year.
The revenue for Q1 2025 remained stable at AED 30.4 million, slightly up from AED 30.0 million in Q1 2024. This stability was largely driven by the company's successful projects in wastewater and water treatment across key markets such as India, Romania, Tunisia, and Jordan. However, the gross profit saw a slight dip to AED 2.2 million from AED 2.6 million in Q1 2024.
DSI's total assets stood at AED 634.3 million as of March 31, 2025, compared to AED 647.0 million at the end of 2024, while total equity decreased to AED 145.6 million from AED 151.7 million. Despite these slight declines, the company maintained a strong cash position with AED 298.5 million in unrestricted cash, showcasing prudent financial management.
The increase in general and administrative expenses to AED 11.4 million from AED 8.6 million in Q1 2024 reflects the company's strategic investments in staffing, legal, professional, and business development costs, aligning with its growth and compliance activities. The strategic investments in property amounting to AED 21.4 million indicate DSI's commitment to ongoing growth and operational priorities.
Given the company's return to profitability and its strategic positioning in key growth markets, the future outlook for DSI appears optimistic. Investors might consider holding their positions to benefit from potential future gains as the company continues to stabilize and expand its operations.
Source
Summary
Drake and Scull International PJSC (DSI) reported a net profit of AED 2.5 million for the first quarter of 2025, marking a return to profitability from a net loss of AED 42.5 million in the same period of the previous year. The company's revenue for Q1 2025 was AED 30.4 million, slightly up from AED 30.0 million in Q1 2024, while gross profit decreased to AED 2.2 million from AED 2.6 million. Total assets stood at AED 634.3 million, and total equity was AED 145.6 million as of March 31, 2025. Revenue stability was attributed to wastewater and water treatment projects in markets like India, Romania, Tunisia, and Jordan. General and administrative expenses increased to AED 11.4 million due to higher staffing and other costs. DSI maintained a strong cash position of AED 298.5 million, with cash movements mainly due to strategic property investments of AED 21.4 million.
