Drake & Scull International, which made a big quarterly loss 12 months ago, reports net profit after debt restructuring plan
Drake & Scull International, the Dubai-based contracting giant which has recently completed the restructuring of its corporate general bank debt in the UAE, said on Tuesday that it returned to profit in the first quarter of 2018.
The company said it made a net profit of AED7 million compared to a net loss of AED839 million in the first quarter of 2017.
Drake said Q1 revenue totalled AED693 million compared to AED796 million achieved in Q1 2017.
DSI said its total project backlog stood at AED5.4 billion, supported by the AED305 million worth of projects secured primarily in its home market since January 2018.
The company attributed the improved results to the positive momentum achieved during the first quarter. Core metrics related to operational performance across key markets and segments showed signs of business stabilisation.
Rabih Abou Diwan, investor relations director, said: “We are pleased to start the financial year with a return to profitability. The various reforms implemented by the new management have added significant strategic and operational impetus, in terms of efficiency and productivity measures achieved during the quarter.
"We will continue to leverage the synergies across our operating segments to improve our operating performance by reducing our overheads and by recalibrating our services portfolio to drive margin accretion.
“Our target is to sustain our quarterly performance across all operating segments and key markets throughout the fiscal year and to secure profitable projects with our key strategic clients in the region.”
In January, DSI announced that it had successfully completed the restructuring of its corporate general bank debt in the UAE.
The company said that it has also secured new credit lines and working capital facilities for its ongoing and new projects portfolio.