UAE-based contractor Drake & Scull International (DSI) has reported a net profit growth of $1.9m (AED7m) for the first quarter of 2018, swinging from a net loss of $228m (AED839m) in the corresponding period last year.

The overall revenue in the first quarter stood at $189m (AED693m), as compared to nearly $217m (AED796m) achieved in Q1 2017, according to a company statement.

The company also reported a Q1 2018 gross profit of $27m (AED101m) as compared to the gross loss of $13m (AED49m) reported for Q1 2017, as well as a Q1 2018 operating profit of $12m (AED45m) versus an operating loss of $221m (AED812m) reported in the same period last year. 

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The company has attributed the improved results to the "positive momentum" achieved during the first quarter, showing stabilisation across its key markets and segments.

DSI also said that it has “unlocked additional value” in key areas, which were affected by the impact of legacy issues on certain projects over the past few years.

Rabih Abou Diwan, investor relations director, said: “We are pleased to start the financial year with a return to profitability.

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“The various reforms implemented by the new management have added significant strategic and operational impetus, in terms of efficiency and productivity measures achieved during the quarter.

“We will continue to leverage the synergies across our operating segments to improve our operating performance by reducing our overheads and by recalibrating our services portfolio to drive margin accretion.”

Diwan added that the company’s target is to sustain quarterly performance across its business this year, while also continuing to secure projects with regional clients.

DSI’s total project backlog stands at $1.4bn (AED5.4bn), supported by the $83m (AED305m) worth of projects secured primarily in the UAE since January 2018.