Dubai DSI Expects To Win $300 Mln Iraq Pipeline Contract -CEO

Tuesday, May 22, 2012

(This story was originally published Monday.)

ABU DHABI (Zawya Dow Jones)--Drake and Scull International CEO Khaldoun Tabari said Monday his company expects to win a $300 million pipeline contract in the second quarter of this year.

"We are in the final negotiations for a contract in Iraq for a pipeline. We expect it to be announced in thirty days and its worth about $300 million [for DSI]," Tabari told reporters on the sidelines of an industry event here.

He added that DSI will be working as part of a consortium for the deal and it has been informed by the private international company tendering the contract that DSI's Oil & Gas division is the preferred bidder.

Tabari said he expects more business opportunities to come from Iraq and is aggressively bidding for a market share there.

He added that he expects to see a stronger second quarter in 2012. In the first quarter the Dubai-based contractor posted a 18% drop in net profit to AED37.6 million.

"I don't think we will take more provisions in the second quarter and we expect revenues to remain strong," he added.

-By Tahani Karrar-Lewsley, Dow Jones Newswires; +9714 446-1692; Tahani.Karrar@dowjones.com

(END) Dow Jones Newswires

22-05-12 0349GMT