DSI Q1 net profit rises 21% to Dh51m

Drake & Scull International's first quarter net profit rose 21 percent, 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 51 million dirhams ($13.88 million), up from profit of 42.2 million dirhams in the prior-year period.

Four analysts had forecast average profit of 43.35 million dirhams, in a Reuters poll.

Revenues for the quarter jumped 67 percent to 645 million dirhams, it said in a statement.

Drake's backlog stood at 7.5 billion dirhams at the end of March, having won MEP projects worth a total 2.8 billion dirhams 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 128 million riyals.

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 percent higher. Its results were released after markets closed.

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