Drake & Scull International posted 76% increase in Q3 net profit beating analysts forecasts and the contracting firm said it expects to maintain profit growth in the Q4.

The Dubai based company made a net profit of AED 60 million in the Q3 compared with AED 34 million made in the prior year period. Analyst polled by Reuters forecast a profit of AED 48.5 million for the Q3.

Revenue for the Q3 was AED 847 million up 96% from AED 432 million in the Q3 of 2010. Total projects awarded year to date totalled AED 3.6 billion.

Construction companies in the UAE, slowly recovering from a property market collapse where house prices fell more than 60% are expected to see further pressure following fears of another global recession and the European debt crisis.

Credit Suisse cut its price target on Drake and Arabtec in September citing lower margin estimates and a slump in contract awards for the companies. Drake, whose biggest market is Saudi Arabia has been looking to rapidly expand its operations outside Dubai. The company is currently bidding for projects in both Asia and the Middle East and North Africa.

Mr Osama Hamdan CFO of Drake & Scull International said that "We expect a pickup in our backlog in the fourth quarter as we anticipate new project announcements."

(Sourced from www.arabianbusiness.com)