Font Size

- Aa +

Mon 12 Sep 2011 10:56 AM

Font Size

- Aa +

Drake & Scull secures AED75m contract in Al Ain

Dubai firm says construction on sewage project to be completed by November 2012

Drake & Scull secures AED75m contract in Al Ain
(Photo by Sean Gallup/Getty Images)

Dubai-based
Drake & Scull Water and Power has been awarded an AED75m ($20.4m)
infrastructure contract for the construction of a sewerage project in Al Ain,
the firm said on Monday.

The
company, a subsidiary of Drake & Scull International (DSI), said work on
the project will start immediately and will be completed by November 2012.

DSI has
been focusing on projects outside of its home market since the onset of the
global financial crisis caused construction projects in Dubai to dry up. The
company started its operations in Algeria during the second quarter of this
year and is planning to expand into new geographies such as India, Iraq,
Vietnam and Djibouti.

DSI
secured AED3.263bn in contracts in the first half of the year and posted a net
income of AED51m in the second quarter up 12 percent on Q1.

Rasmala
last week said DSI is likely to see strong revenue growth "for the
forseeable future”. The investment bank said it was raising its forecast for
revenue growth by 10 percent for 2011-14.

“We
expect the company to maintain its strong growth trajectory during the
foreseeable future,” it said in a report which recommended a Buy rating on
Drake & Scull shares and a price target of AED1.15 per share.

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.