Dubai's Depa posts $2.3m loss in Q1 net profit

Depa Ltd, the interior contractor that fitted out Dubai's Burj Khalifa, the world’s tallest tower, on Sunday posted net losses of AED8.7m ($2.3m) in the first quarter of 2012. The contractor said it compared to losses of AED19.3m in the same period last year, adding that the figures reflected "the seasonal cyclicality in earnings which are heavily weighted to the second half of the year". In the first three months of the year, contract income was AED378.1m, up 15.5 percent on Q1 2011. Depa posted net profit of AED59.1m ($16m) for 2011 after a AED205.7m loss the previous year. Gross profit margin was 10.9 percent in Q1, Depa said, as it saw a return to "more normal margin levels following the resumption of new project work which clients had held due to the economic downturn". Depa said its backlog remained at record levels and as of March 31 stood at AED3.9bn. "This record backlog reflects just under AED500m of new contracts signed during the first quarter," Depa said in a statement. The company said it has also streamlined areas of its operations. Total assets were AED3.05bn with cash and bank balances of AED389.6m at the end of 2011, Depa added. Mohannad Sweid, CEO of Depa, said: "We continue to sign sizeable contracts with established names across the GCC and in South East Asia and we anticipate increasing our backlog, already at record levels, during the year. "The macro-economic environment has improved considerably and we are witnessing an increase in activities from both public and private sector clients. "This, together with the actions we took to diversify and streamline the business will position Depa well for future market recovery." Depa said it was making good progress in newer territories and during Q1 won a AED92m project for the fit-out of Accommodation Towers, Angola. The company also won a further contract for work on the Baku Flame Tower project in Azerbaijan.