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Dubai’s Drake outstanding receivables at $245 mln-CFO
Drake has 170 mln dhs outstanding receiveables in Dubai.
November 10, 2010 12:23 by Reuters
Dubai Contractor Drake & Scull International (DSI) has 900 million dirhams ($245 million) of total outstanding receiveables, less than a quarter in Dubai, its chief financial officer said on Wednesday.
Drake, which specialises in mechanical, engineering and plumbing businesses (MEP), has 170 million dirhams of outstanding receiveables in Dubai, CFO Osama Hamdan told reporters. “We have issues but not on the scale that we have seen in Dubai. “The company is not exposed to the Dubai debt scenario and our clients (in Dubai) have been good and have been doing well.”
The total amount includes accounts receivable and retentions.
Hamdan said Drake is eyeing a project backlog of 6 billion dirhams by year-end, up from 5.5 billion dirhams currently.
Drake’s backlog in Saudi Arabia stands at 815 million riyals ($217.3 million).
Drake would likely announce a second acquisition of a civil construction company in the kingdom by the end of November he said, after it bought 65 percent of Drake & Skull International Saudi WLL for 243 million dirhams in September.
Drake, which has been rapidly expanding its operations outside Dubai, where house prices have plunged some 60 percent since their peaks in 2008 as a result of the financial crisis.
The company’s chief executive said on Tuesday it is prepared to take on debt to make a substantial acquisition as it eyes strategic purchases, possibly in India. Khaldoun Tabari added that the firm has 500 million dirhams in cash.
Drake & Scull reported a sharp 45 percent drop in quarterly profit this week, below expectations, triggering a share sell-off
Drake’s shares were up 0.7 percent at 0747 GMT, outperforming Dubai’s bourse which eased 0.01 percent. (Writing by Jason Benham Editing by Reed Stevenson)