Drake & Scull Reports Strong Revenue Growth in H1 2025
Drake & Scull International PJSC posts impressive revenue growth in H1 2025, reflecting robust project execution and strategic restructuring.
Summary
Drake & Scull International PJSC reported a 57% increase in revenue for H1 2025, driven by strong performance in key markets. Despite a drop in net profit due to restructuring adjustments, the company shows signs of operational strength and strategic growth.
Drake & Scull International PJSC (DSI), a prominent player in the contracting services sector, has announced its financial results for the first half of 2025, showcasing a notable 57% increase in revenue compared to the same period last year. The company reported revenues of AED 77.9 million, up from AED 49.7 million in H1 2024, driven by robust performance in its water and wastewater treatment projects across key markets such as India, Tunisia, Romania, and Jordan.
Despite the impressive revenue growth, DSI's net profit for H1 2025 stood at AED 6.5 million, a significant drop from AED 3.8 billion in H1 2024. However, it is crucial to note that the previous year's net profit was heavily influenced by a one-time restructuring adjustment, which skews direct year-on-year comparisons.
The company's gross profit also saw a healthy increase, rising to AED 5.9 million from AED 3.7 million in H1 2024. This improvement reflects better cost management and efficient project execution, underscoring the company's strategic focus on optimizing operational efficiencies.
DSI's restructuring plan continues to play a pivotal role in its financial strategy, with efforts to offset accumulated losses against statutory reserves. While general and administrative expenses increased to AED 24.5 million, primarily due to higher legal and professional fees, the company maintains a solid liquidity position. With cash and bank balances totaling AED 309.2 million, DSI is well-positioned to ensure operational flexibility and support future growth initiatives.
Looking ahead, DSI's strategic focus on restructuring and optimizing its core operations positions it well for stable growth. However, potential investors should consider the company's ongoing restructuring efforts and market conditions before making investment decisions. Given the current financial landscape and DSI's operational adjustments, a 'hold' recommendation seems prudent for now, allowing investors to monitor the company's progress and market developments.
Source
Summary
Drake and Scull International PJSC (DSI), a company specializing in contracting services for mechanical, electrical, and plumbing, as well as oil and gas, and water and wastewater treatment projects, reported a net profit of AED 6.5 million for the first half of 2025. This is in comparison to AED 3.8 billion in H1 2024, which included a one-time restructuring adjustment. Revenue increased by 57% to AED 77.9 million, driven by strong performance in projects across India, Tunisia, Romania, and Jordan. Gross profit rose to AED 5.9 million due to better cost management and project execution. Total assets decreased by 2.7% to AED 629.5 million, while total equity increased by 4.4% to AED 158.4 million. Cash and bank balances stood at AED 309.2 million, supporting operational flexibility. General and administrative expenses were AED 24.5 million, up from AED 21.2 million, due to higher legal, professional, and business development costs. DSI continued its restructuring plan, offsetting some accumulated losses against the statutory reserve.
