Drake & Scull International reported a H1 2018 net loss of $49.82m, citing performance of subsidiaries in secondary markets
Drake & Scull International (DSI) has appointed a new CEO to replace Dr Fadi Feghali, amid a restructuring plan which will see it scale down operations in non-core businesses and non-performing business streams, the company announced on Tuesday.
The new CEO, Yousef Al Mulla, who will take over on August 26, was previously CEO of Square General Contracting and has served as the managing director for Transemirates Contracting Company.
According to DSI, Dr. Feghali will assume a new role within the DSI Group, which “will be announced in due course.”
The announcement comes as Drake & Scull reported a net loss of AED 183 million ($49.82 million), which DSI attributes to the performance of subsidiaries in secondary markets in Qatar, Oman and Jordan in the second quarter, as well as defaults on project debt obligations and arrears in the secondary markets, which in turn resulted in increasing finance costs and negative margin impacts.
DSI’s core market, the UAE, remains relatively stable, the company said.
According to DSI, the company is currently working on a new restructuring plan that will “carry forward the legacy of the ongoing restructuring and recapitalisation drive” and ensure the company’s continuity and future business prospects.
In July, an internal DSI probe into alleged violations by the previous management concluded that former CEO Khaldoun Al Tabari and his daughter owe the contracting firm as much as AED1 billion ($272.3 million), according to people with knowledge of the matter.
The amount exceeds the market value of the Dubai-based company, whose shares plunged about 70 percent this year - the most among companies listed in Dubai.
Al Tabari, however, hit back at the allegations and vowed to initiate libel claims against “unfounded news” made against him.