Dubai’s Drake & Scull Q3 Net Profit Falls 10%, Beats Estimates

Dubai’s Drake & Scull (DSI) reported a 10 per cent drop in third-quarter profit on Sunday, beating analyst estimates as revenue increased.

The contractors made a net profit attributable to shareholders of Dhs21.4 million ($5.83 million) in the three months to Sept. 30, down from Dhs23.8 million in the year-earlier period, according to a statement to Dubai’s bourse.

Analysts polled by Reuters had on average forecast DSI would make a third-quarter profit of Dhs16.1 million.

“Operating cash flow remains stretched until we finalise our negotiations on the large claim and variations orders with some of our major clients in Saudi Arabia,” DSI’s chief financial officer Mukhtar Safi said in the statement.

“Overall, we have picked up operational momentum in our key markets in the GCC (Gulf Cooperation Council) and particularly in the UAE.”

DSI’s third-quarter revenue was Dhs1.24 billion, up from Dhs995 million a year earlier.

The company also announced it had issued a $120 million five-year sukuk via a private placement.