Drake Q2 profit rises 63%

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.

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 Saudi Arabian city of Jeddah.

Drake & Scull International (DSI) reported total revenues of Dh2.567 billion and total net profit of Dh114.9 million for the first half of 2013 ended June 30th.

Earnings per share (EPS) for the first half of the year stood at Dh0.044 indicating a 56.1% growth compared to the same period last year.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) reached Dh189.9 million compared to Dh107 million indicating improved operational efficiency.

Total project awards year-to-date reached Dh5.2 billion in Saudi Arabia, UAE, Qatar, Jordan and India. The total Order Backlog reached a record high closing at Dh11.7 billion as of the 30th of June representing a 58.1% growth compared to Dh7.4 billion recorded during the same period last year.

“The results of the first half of the year are a testimony of our commitment to deliver growth and solid quality of earnings by increasing revenue growth while improving our operational margins and reducing our SG&A.” Khaldoun Tabari added.