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Thu 11 Aug 2011 05:51 PM

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Dubai’s Drake & Scull posts 22% rise in Q2 profits

Contractor sees revenue rise 79%, aided by string of overseas contract wins

Dubai’s Drake & Scull posts 22% rise in Q2 profits
Drake & Scull International CEO Khaldoun Tabari

Dubai-based
contractor Drake & Scull International (DSI) on Thursday posted a 22
percent rise in second-quarter net profits to $15m, aided by a slew of overseas
contract wins.

Revenues
increased 79 percent to $201m. The company’s backlog rose by 56 percent against
the same period last year to just over $2bn.

The company's backlog at the end of June was AED7.5bn.

The
company’s CFO, Osama Hamdan said that the results had been achieved despite
“significant administrative costs and set-up costs” during the first half,
related to recent acquisitions.

“The acquisitions contributed to the growth in revenues,
however the transactions incurred to finance and complete the acquisitions
affected the net margins respectively,” he said.

“Once
the acquisitions and expansion costs are fully rendered we expect higher top
line and particularly bottom line growth.”

Drake, whose biggest market is Saudi Arabia, 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 secured $925m worth of projects in the first half from Oman, Egypt,
Kuwait, Saudi Arabia, the UAE, Asia and Europe.

Its
latest contract win was a $46m deal, signed in July, to provide MEP works for a
hospital in Abu Dhabi.

“We
are satisfied with our revenue growth in the MEP and the civil business which
recorded a year over year growth of 43% and 376% respectively,” said DSI CEO
Khaldoun Tabari, in a company statement. 

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