Drake & Scull International (DSI) has announced that it was awarded a AED226mn EPC contract by ENI Iraq B.V. (EIBV), a subsidiary of Italy-based ENI S.p.A, to construct a water injection network installment project at the Zubair oil field in Barsa, Iraq. The project has commenced, with scheduled completion for early 2018. This raises DSI’s new awards YTD to cAED570mn, from two awards (2016e: AED3bn). We note that both awards are non-civil, which imply that they carry relatively higher margins. This comes in line with the company’s strategy to selectively bid on high-margin projects, prioritising profitability over backlog expansion. Our numbers incorporate a gross profit margin of 10% in 2016e, in line with management’s target for the year. (Company disclosure, Mai Attia, Sara Boutros)      Drake & Scull International (DU): AED0.58 as of 18 July 2016, Rating: Sell, FV: AED0.41 per share, MCap: USD360 million, DSI UH / DSI.DU