Drake & Scull’s Q3 Profit Misses Forecasts

Dubai’s Drake and Scull International on Wednesday posted third-quarter results that missed analysts’ forecasts despite a near six-fold jump in profit.

Drake, which specialises in mechanics, engineering and plumbing, reported a net profit of Dhs23.8 million ($6.48 million) for the quarter ended September 30, compared with a profit of Dhs3.9 million in the corresponding quarter in 2012, it said in a bourse statement.

However, four analysts polled by Reuters forecasted an average quarterly net profit of Dhs33.7 million.

Drake shares have risen 78 per cent year-to-date on the back of a recovery in Dubai’s real estate market.

Contract revenue for the third quarter rose to Dhs995 million from Dhs622.8 million in the prior-year period.

The contractor said its total order backlog reached a record high of Dhs12.4 billion as of September 30, representing a 65.3 per cent year-on-year growth.