Drake & Scull Q2 profit rises 63pc
Dubai, August 5, 2013
Dubai contractor Drake and Scull International said on Monday its second-quarter net profit rose 63.1 per cent, beating analysts' estimates on new project wins and improved operating margins.
Drake, which specialises in mechanics, engineering and plumbing, reported a net profit of Dh52.2 million ($14.2 million) for the quarter ended June 30, compared with a profit of Dh32 million in the corresponding quarter in 2012, it said in a bourse statement. The company did not specify whether the profit was attributable to its equity owners.
Five analysts polled by Reuters forecasted an average quarterly net profit of Dh49.5 million.
Khaldoun Tabari, CEO, said: "We are well on track in achieving our growth objectives for the year. Saudi Arabia and the UAE continue to be the key drivers to our top line growth. Our recent contract awards in the Jordanian market and the on-going projects in Southern Iraq will contribute to the bottom line growth in the second half of the year as productivity on project sites improve.”
“Operations in Qatar, Kuwait, Algeria and India are steady with sustained margins across all our business streams,” he said.
Drake has won a series of projects in Saudi Arabia and the United Arab Emirates, including a $461 million contract to build a twin-tower residential and commercial development in Jeddah.
“We remain optimistic on the prospects of the second half of the year across all our markets and we expect to continue with the same momentum with additional emphasis on improving liquidity and sustaining profitability,” Tabari added. - Reuters and TradeArabia News Service