Drake & Scull Q1 net profit rises 21pc
Dubai, May 11, 2011
Drake & Scull International's first quarter net profit rose 21 per cent, the Dubai contractor said on Wednesday, beating analyst forecasts, as revenues soared.
Drake, which specialises in mechanical, engineering and plumbing operations (MEP), reported net profit of Dh51 million ($13.88 million), up from profit of Dh42.2 million in the prior-year period.
Four analysts had forecast average profit of Dh43.35 million, in a Reuters poll.
Revenues for the quarter jumped 67 per cent to Dh645 million, it said in a statement.
Drake's backlog stood at Dh7.5 billion at the end of March, having won MEP projects worth a total Dh2.8 billion since the beginning of the year in Oman, Egypt, Saudi Arabia and the United Arab Emirates, it said, adding it remains bullish on expectations for the second half of the year.
Earlier in May, Shuaa Capital upgraded Drake to buy citing its rising backlog and expectations that the contractor's acquisition of a Riyadh-based civil construction firm will allow it to grow further in Saudi Arabia.
In April, Drake bought International Centre for Contracting Co (ICC), which has offices in Jeddah and Damman, for SR128 million.
In March the firm said it got approval from the board to set up a new unit in India. Drake's shares closed 2.9 per cent higher. Its results were released after markets closed. – Reuters
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