DSI's GTCC Abu Dhabi wins labour housing project
MEP giant subsidiary wins AED140 million contract from CAMPCO
Gulf Technical Construction Company (GTCC) Abu Dhabi – a subsidiary of Drake & Scull International (DSI) – won an AED140 million turnkey project from CAMPCO Properties LLC, a company set up by DSI and Buhairan Limited.
The project is a G+2 labour accommodation building with an area of 49,425m2 and will accommodate 5,000 workers when completed in November 2011.
GTCC Abu Dhabi is the main contractor of the project and will oversee the construction of the accommodation building in Al Dhafra, in the UAE capital.
Khaldoun Tabari, Drake & Scull CEO, said the win underlined the company’s diversification and expansion strategies as well as entry into a “promising and lucrative market niche for the company”.
CAMPCO Properties LLC was established earlier this year by the company in tandem with Buhairan Limited Company.
DSI has seen a very active year so far that includes newly developed business lines and the acquisition of subsidiaries.
Drake & Scull Water and Power (DSWP) was established to manage and control all existing and new Water Power and Infrastructure projects across the MENA region, and Drake & Scull Construction (DSC), which controls the regional civil contracting expansion in addition to the existing operations in Dubai and Abu Dhabi.
In April 2010, DSI PJSC bought Drake & Scull International Qatar, the Doha-based arm fo the MEP contractor, which helped it increase its market share in the region.
In July the company won an AED460 million contract for Riyadh’s Information Technology and Communications Centre (ITCC) – ‘Smart City’ project in a joint venture with Al Zamil Group, one of the largest conglomerates in the Kingdom of Saudi Arabia that includes lines in glass and steel.
The contract was awarded by Rayadah Investment Company, the investment arm of the Saudi government’s Public Pensions Agency (PPA).It takes the value of contracts won by DSI this year to AED2 billion.
The company saw net profits fall by 40% in both the three- and six-month periods so far this year. After-tax revenue fell 43% from AED151.8 million to AED86.3 million as contract revenues slipped by just over a fifth from AED1 billion in 2009 to AED789 million up to June this year.
In this time general expenses rose around AED24 million and finance costs increased from AED6.67 million to AED11 million.