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Sun 16 Nov 2014 11:09 AM

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Dubai's Drake & Scull Q3 net profit falls 10 pct, beats estimates

Contractors said "operating cash flow remains stretched"

Dubai's Drake & Scull Q3 net profit falls 10 pct, beats estimates
Khaldoun Tabari, Drake & Scull CEO

Dubai's Drake & Scull (DSI) reported a 10 percent drop
in third-quarter profit on Sunday, beating analyst estimates as revenue
increased.

The contractors made a net profit attributable to
shareholders of AED21.4 million ($5.83 million) in the three months to
September 30, down from AED23.8 million in the year-earlier period, according
to a statement to Dubai's bourse.

Analysts polled by Reuters had on average forecast DSI would
make a third-quarter profit of AED16.1 million.

"Operating cash flow remains stretched until we
finalise our negotiations on the large claim and variations orders with some of
our major clients in Saudi Arabia," DSI's chief financial officer Mukhtar
Safi said in the statement.

"Overall, we have picked up operational momentum in our
key markets in the GCC (Gulf Cooperation Council) and particularly in the
UAE."

DSI's third-quarter revenue was AED1.24 billion, up from
AED995 million a year earlier.

The company also announced it had issued a $120 million
five-year sukuk via a private placement.

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