DSI profits fall in first half
Drake & Scull International’s (DSI) net profit fell by 37.6 per cent to Dh71.7 million ($19.5 million) for the first six months of 2014 compared to the Dh114.9 million ($31.28 million) it reported over same period in last year due to operational delays on major projects in Saudi Arabia.
Total revenues also fell over the six months ending June 30 by 8.3 per cent to Dh2.35 billion ($640.6 million) from last year’s Dh2.56 billion ($698.6 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) were Dh149.9 million ($40.8 million) compared to Dh220.4 million ($60.01 million), dropping 32 per cent year on year.
DSI blamed the decline in total revenues, EBITDA and net profit during the first half of the year mainly to the lower contribution of the general contracting business which dropped 5 per cent, 2.5 per cent and 37.1 per cent respectively compared to last year mainly from operations in Saudi Arabia. However, the engineering business’ contribution to the top line increased by 6.6 per cent.
DSI’s order backlog reached Dh14.27 billion ($3.88 billion) representing a year-on-year increase of 21.7 per cent.
Hyundai E&C wins $248m substation contract
South Korea’s second-largest builder Hyundai Engineering and Construction Company (Hyundai E&C) has secured a $248-million substation building and refurbishment contract in Saudi Arabia.
The order, placed by Saudi Electricity Company (SEC), calls for building a new 380-KV combined substation at the Jubail industrial complex in the kingdom. In addition, the builder will be tasked with refurbishing nearby substations.
“The overall project is expected to take 27 months, with the completion date set for October 2016,” the company said in a press release.
It said the new substation will be the largest such facility in the kingdom.
Since entering Saudi Arabia’s power station and substation building market in 1977, Hyundai E&C has secured some 70 orders. At present, it is engaged in 13 projects in the country, including the building of power lines, power substations, an alumina refinery and an indoor sports arena worth some $3 billion.
SEC placed the order as demand for electric power is expected to go up steadily in the coming years. The country’s maximum electricity demand is estimated at 51.9 GW at present, but this is expected to surge to 85 GW by 2020 and 120 GW by 2030.