Dubai’s Drake Q1 Net Profit Rises 47%

Dubai contractor Drake and Scull International said on Thursday its first-quarter net profit surged 47 per cent as its main businesses grew on the back of increased orders from its key market Saudi Arabia, helping beat analysts’ forecasts.

Drake, which specialises in mechanics, engineering and plumbing, reported a net profit of Dhs63 million ($17.15 million) for the quarter ended March 31, compared with a profit of Dhs37.6 million in the corresponding quarter in 2012, it said in a bourse statement.

Four analysts polled by Reuters had on average expected Drake to report a net profit of Dhs29.2 million for the first-quarter.

Revenue for the quarter increased 58 per cent to Dhs1.22 billion from Dhs777 million a year earlier, Drake said, while total order backlog closed at Dhs9 billion as at March 31.

Shares of DSI have climbed 35 per cent this year on growing speculation that it was a takeover target, with Dubai builder Arabtec viewed by analysts as a possible buyer.

Arabtec’s Chief Executive Hasan Ismaik said in April that it was not interested in a stake in Drake.