By Joanne Bladd
Contractor looks to diversify revenues in new markets. Board recommends no dividend for 2010
Dubai-based contractor Drake & Scull International said
Monday its board had approved setting up a new unit in India as the company
looks to break into new markets.
In a statement to the Dubai bourse, the company said its
board also recommended no dividend for 2010, after the firm saw net profit fall
to AED162m last year from AED280m a year in 2009.
Drake & Scull, which focuses on mechanical, engineering
and plumbing businesses, has moved to diversify its incomes outside of the UAE,
where it currently gets most of its sales.
DSI recently won a contract for the King Abdullah Petroleum
Studies and Research Center in Riyadh for a total value of SR2bn and is looking
to break into the Iraq market.
Outside the Gulf, Drake is tendering for work in Egypt, Vietnam and
The contractor had a backlog of AED4.9bn as of December and
has added AED2.7bn worth of work since the beginning of 2011.
Chief corporate affairs officer Zeina Tabari said earlier
this month the firm is expecting revenues of around AED623m ($170m) in the
first and second quarters of 2011, helped by revenues from Saudi Arabia.