Dubai construction firm Drake & Scull reported a 2016 net loss of 786.9 million dirhams ($214.4 million) on Tuesday, narrowing from a loss of 938.8 million dirhams in the previous year.
Revenues shrank to 3.24 billion dirhams last year from 4.20 billion dirhams in 2015. The contractor's net loss for the fourth quarter of 2016 amounted to 490 million dirhams, compared to a profit of 14.7 million dirhams a year earlier.
Drake & Scull also said that as part of its turnaround and capital restructuring plan, it was considering proposing a rights issue of 500 million dirhams in equity to a strategic investor, and that it had secured a binding offer from UAE-based Tabarak Investment.
Like other construction firms in the region, the company has been hit hard by tough competition in the sector and an economic slowdown caused by low oil prices.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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