Font Size

- Aa +

Thu 14 May 2015 10:55 AM

Font Size

- Aa +

Drake & Scull Q1 profits slump 38% over 'major setbacks' in Saudi Arabia

Dubai contractor said operational issues in the kingdom would continue to affect its performance throughout 2015

Drake & Scull Q1 profits slump 38% over 'major setbacks' in Saudi Arabia

Dubai's Drake & Scull  (DSI) reported a 38 percent drop in first-quarter profit on Thursday, missing an analyst's estimate as revenue fell, and it warned that difficulties in Saudi Arabia would affect its performance this year.

The contractor made a net profit attributable to shareholders of AED25.1 million ($6.83 million) in the three months to March 31, down from AED40.3 million in the year-earlier period, according to a statement to Dubai's bourse.

GLobal Investment House had forecast DSI would make a first-quarter profit of AED38 million.

DSI's first-quarter revenue was AED1.11 billion, down from AED1.25 billion a year earlier.

"Despite the volatile market conditions and the liquidity crunch in our industry, we managed to remain profitable," the company said in the statement.

"We are still dealing with some major operational setbacks in Saudi Arabia which will continue to have a far-reaching effect on our performance in 2015." It did not elaborate.

For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.