Wednesday, Aug 24, 2011
DUBAI (Zawya Dow Jones)--Depa (DEPA.DIF), a Dubai-based interior contracting company, Wednesday said it swung to a first-half net profit but its revenues dropped due to the delay or slow start of several projects in the Middle East and North Africa, particularly in those countries hit by the political unrest.
The company posted a first-half net profit of 48 million U.A.E. dirhams ($13.1 million), compared to a AED103.7 million loss in the same period in 2010, according to an emailed statement. First-half revenues fell to AED748.9 million compared to AED845.5 million in the corresponding period in 2010.
The drop in revenues was due "to delayed starts and slow progress on certain projects in the MENA region, especially in countries currently facing political turmoil," the company said.
The company's backlog of new contracts stood at AED2.3 billion at the end of June, and has increased since then by a further AED420 million as of August 20.
Depa stuck to its warning in July that the Arab Spring has delayed the signing of new projects which has hit its full-year outlook.
"As we noted in our July trading statement we had originally anticipated meeting 2009 revenue and profits, but the delay in signing regional projects due to the uncertainty caused by the Arab Spring has had a notable impact on full-year expectations this year as project start dates were moved out," the company said.
It does, however, expect to win some large project wins in the GCC region over the coming year "as momentum begins to pick up" and on the back of fresh government-related spending, while looking at opportunities in Asia.
Depa shares closed unchanged at $0.475 on Nasdaq Dubai.
-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
24-08-11 1102GMT
