By Joanne Bladd
Dubai contracting firm has AED7.5bn order book, revenues in Q1 jump 67%
Drake & Scull International, the Dubai-based contracting giant, said first-quarter net profit jumped 21 percent as contract wins sent revenues soaring.
The mechanical, engineering and plumbing firm saw net profit of AED51m for the three months to March 31, 2011, up from AED42.2m in the year-earlier period.
Revenue for the quarter jumped 67 percent to AED645m, the company said in a statement to the Dubai bourse on Wednesday.
“The scale and diversity of our operations in the region enable us to achieve robust financial results driven by a strong performance,” said CEO Khaldoun Tabari in a statement.
Drake’s order book stood at AED7.5bn as of March 31, 2011, driven by contract wins this year in Saudi Arabia, Oman and Egypt worth a combined AED2.8bn.
“The company remains bullish on its expectations for the second half of the year,” the statement said.
Drake, which specialises in mechanical, engineering and plumbing businesses (MEP), has been rapidly expanding its operations outside Dubai, where house prices have plunged some 60 percent since their peaks in 2008 as a result of the financial crisis
The company said it April it had not ruled out acquisitions to enter the competitive Indian market this year. The company last month bought the Riyadh-based for International Centre for Contracting Co in a deal valued at AED128m ($34.13m).
The buyout marked the second acquisition by Drake in Saudi after it acquired 65 percent of Drake & Scull International Saudi WLL for AED243m in November last year.
Drake & Scull posted a net profit of AED162m for the twelve months to December 31, 2010, down from AED280m in 2009 as competition and acquisition costs took a toll on revenues.