drakescull expects record return
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Drake & Scull expects record return

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Drake & Scull expects record return

Dubai - Arabstoday

Drake & Scull International (DSI), the Dubai contractor, expects to post a record profit this year and is considering its first dividend to shareholders since 2009, bucking the trend of the region\'s depressed development and construction industry.DSI is on track to exceed Dh200 million (US$54.4m) in profit this year, a 23 per cent jump from last year, Khaldoun Tabari, the chief executive, said in an interview this week with The National. Total revenue should surpass Dh3.5 billion, an 89 per cent increase from last year, he said. Expansion in Saudi Arabia and Abu Dhabi should help to grow the company\'s backlog of projects to Dh10bn by the end of the year, up from Dh7.5bn at the end of June, he said, DSI raised Dh124bn in an initial public offering in 2008, which fuelled a round of acquisitions in the region, providing the company a presence in all the major markets. With no new acquisitions planned, Mr Tabari said he would be likely to recommend that the board approve a cash distribution to shareholders at the end of the year. \"If you are not going to acquire companies and you have got the cash, what is better than to give it to shareholders?\" Mr Tabari said. Paying a dividend may produce mixed reactions from the investment community. \"I would rather see them preserving cash right now,\" said Majed Azzam, an analyst with AlembicHC, which has an overweight rating on the company\'s shares. \"If they do pay a dividend they may need to raise debt, which investors don\'t like.\" Middle East construction and property stocks have been out of favour for the past year. DSI\'s shares were trading at 85.4 fils yesterday, down from a high of Dh1.10 on April 20. But Mr Tabari said the company\'s balance sheet was strong and had tender offers out on projects in the region valued at Dh30bn. \"We can borrow if we need to, but we have plenty of cash,\" Mr Tabari said. By the end of the year Saudi Arabia will account for between half and 55 per cent of the company\'s backlog, with Abu Dhabi the next largest market at 25 per cent. The Saudi Arabia backlog includes a 2bn riyal (Dh1.95bn) deal to help to fit out the King Abdullah Petroleum Studies and Research Centerproject in Riyadh. The company booked the first Dh210m from the contract in the second quarter. DSI is in the midst of a transition, expanding beyond mechanical, electrical and plumbing into more civil and engineering contracts, where DSI serves as the primary contractor, as well as water and power infrastructure.Four years ago 100 per cent of the company\'s business was in mechanical, electrical and plumbing work.By the end of the year civil contracts will account for half of the business, with mechanical, electrical and plumbing, and water and sewage treatment contracts each providing 25 per cent, Mr Tabari said. DSI has faced minimal problems from turmoil in the region. The company has stopped work on a Dh85m hotel project in Homs, Syria, and relocated about 20 employees. In Libya, the company shut down its one-man office when the civil war broke out. The company was expected to win two contracts worth $100m, but those deals were never included in its backlog, Mr Tabari saidDSI has resumed work on two projects in Egypt, valued at Dh540m. From / The National

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

drakescull expects record return drakescull expects record return

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

drakescull expects record return drakescull expects record return

 



GMT 09:54 2018 Wednesday ,24 January

'Friendly and kind' N. Korean skaters

GMT 09:36 2017 Thursday ,07 December

Heidy Karam’s contract to present talk show close

GMT 10:50 2012 Friday ,20 January

Dusty weather expected in UAE on Friday

GMT 09:35 2018 Saturday ,13 January

New Zealand bat first in third ODI against Pakistan

GMT 10:48 2017 Saturday ,23 December

Meryl Streep's brand under threat

GMT 06:53 2017 Thursday ,11 May

17th Doha Forum To Begin Sunday

GMT 10:30 2017 Thursday ,23 November

Reports underline proliferation of weapons in Arab world

GMT 07:46 2017 Monday ,30 October

Catch it early, treat it early and move on

GMT 08:05 2015 Tuesday ,17 February

Conan O'Brien is first late night host to film in Cuba

GMT 16:17 2018 Thursday ,30 August

Five Saudi women pilots granted GACA licences
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice