Drake & Scull wins Dh845m Algeria deal

What's Up: Drake & Scull International rose to the highest level in more than a week yesterday after the Dubai contractor announced that it had won a Dh845 million contract in Algeria.

Drake & Scull International (DSI) rose to the highest level in more than a week yesterday after the Dubai contractor announced that it had won a Dh465 million contract in Algeria.

The contract was awarded to its civil contracting subsidiary, DSI said in a statement posted on the main Dubai bourse website. No further details were mentioned.

DSI traded as high as 3 per cent to Dh1.03, the highest since March 5, on the Dubai Financial Market General Index.

The shares are up 30.7 per cent so far this year.

"The contract is the company's first big project this year," said Hettish Karmani, an analyst at Global Investment House in Kuwait.

"It's the first big win for Algeria as well, as previously DSI was only winning small scale projects."

Mr Karmani estimates the company will add Dh4 billion worth of new projects to its backlog, bringing a total of Dhbn for the year.

DSI, whose activities include civil contracting, mechanical, electrical and plumbing work, and water and power projects, has turned its attention to other markets in the region after a slowdown in Dubai's property sector.

The company was awarded a $96m commercial development project in Riyadh in December. The builder also won a $39m construction contract for an ammonium nitrate plant in Ain Sukhna, Egypt.

DSI reported a 36 per cent increase in full-year profit last month to Dh220m. Analysts estimated the company would report a profit of Dh207m. It offered a 5 per cent cash dividend.

DSI launched an initial public offering in 2008, when it raised about $322m, and went public in March 2009.

It has been growing through acquisitions, including the purchase of a subsidiary in Qatar and Saudi Arabia in the last two years.

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*This story has been modified from the original which stated the contract win totalled Dh465 and the company would add $US$$ billion in new projects not Dh4billion. The National regrets the errors.