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Tue 9 Jun 2020 05:56 PM

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Drake & Scull turns a profit after years of losses

DSI turned a net profit of AED262 million ($71.3 million) compared to over AED5 billion in losses in 2018

Drake & Scull turns a profit after years of losses
Drake and Scull suffered losses for years but has finally turned a profit 

After years of losses construction company Drake & Scull International PJSC (DSI) has turned a net profit of AED262 million ($71.3 million), according to its audited financial results for the year ended December 2019, compared to over AED5 billion in losses in the same period last year.

It recorded a total of AED681m in revenue for the full year while it's backlog remained stable at AED625m, including AED309m from Joint-Ventures, driven by on-going operations in the UAE, Germany, Algeria, Kuwait and Iraq, while its gross profits stood at AED8m and the Net profit for the year stood at AED 262 million compared to 

“The Board of Directors and I would like to thank the executive management for their vision, tenacity, and their tremendous efforts in stabilizing the company which will enable the restructuring to be completed this year. I would also like to extend my thanks and deep gratitude to the Securities and Commodities authority for their efforts and continuous support," said Shafiq Abdelhamid, Chairman of DSI, adding that the company's restructuring plan is on track.

"The team at DSI has worked tirelessly for the past year to tackle the real challenges of dealing with the huge losses recorded in 2018, and the burden left by the previous management. The financial restructuring is progressing with the lead banks, and we have made real efforts to reach out to all the trade creditors ahead of finalising the restructuring proposal which will need the continued support of all stakeholders. Once the restructuring is complete it will position DSI so as to be able to regain its position as profitable international MEP contractor," he said.

In 2019 the company re-focused on its core business activities of MEP contracting, water and energy and oil & gas, and reduced operational costs.

DSI has completed over 700 projects around the world in the aviation, residential and mixed-use real estate, power plant, cooling plant, hospitality, healthcare, renewable energy, data center, petrochemical, rail, commercial, government, leisure and infrastructure sectors.

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