Drake & Scull International reported a sixfold increase in profits after picking up a clutch of new orders. Net income rose from Dh3.9 million to Dh23.8m during the third quarter.
Third-quarter bonanza for Dubai’s Drake & Scull
Drake & Scull International reported a sixfold increase in profits after picking up a clutch of new orders.
Net income rose from Dh3.9 million to Dh23.8m during the third quarter.
The Dubai-based builder, which specialises in mechanical, electrical and plumbing installation, increased revenues 60 per cent from Dh622.7m last year to Dh995m.
It made the disclosure in a regulatory filing to the Dubai bourse.
Drake & Scull has benefited from the resumption of large-scale infrastructure projects in Dubai and Abu Dhabi, and has also expanded into regional construction markets, including Saudi Arabia.
Revenue mostly came from its civil and engineering divisions. The civil division’s revenue rose from Dh572m to Dh1.6 billion for the first nine months of the year; the engineering division’s value of contracts grew from Dh1.5bn to Dh1.6bn.
The company’s total backlog grew 65.3 per cent year-on-year to Dh12.4bn at the end of September.
“We have managed to sustain positive momentum in our project wins, which stand at an all-time high of Dh6.74bn year to date. We remain confident of closing the year with a strong quarter,” said the chief executive Khaldoun Tabari.
“These results are roughly in line with what we were expecting,” said Saleem Khokhar, the head of equities at NBAD Asset Management. “In general these results are very positive with strong growth for both the top and the bottom line.”
Expenses at the company also increased during the period from Dh81.5m to Dh103m. However, as a proportion of revenue, expenses reduced from 10.5 per cent last year to 6.6 per cent this year.
Key contract wins over the period include a Dh415m contract from the Dubai contractor Arabtec to construct the mechanical, electrical and plumbing works at Abu Dhabi’s vast Louvre museum.