Current regional construction sector remains extremely challenging, says CEO
Dubai's Drake & Scull swung to a third-quarter net loss of AED985 million ($268.18 million), the firm reported on Sunday, due to provisioning.
This compares to a net profit of AED21.37 million in the year-earlier period. It was also below the estimate of SICO Bahrain, which forecast earnings in the period of AED12.9 million.
The loss was attributed to provisioning and adjustments to revenue and gross profit worth AED984 million, it said in a bourse filing.
on the results, Khaldoun Tabari, CEO and vice-chairman of Drake and Scull
International, said: “As the current regional construction sector remains
extremely challenging we have taken a pre-emptive and prudent view of our exposure
related to key projects and have introduced cost efficiency measures to
preserve cash and initiatives to reduce debt.
remain confident about the prospects for the company. We believe that regional government
diversification programs and required infrastructure investments remain a
significant tailwind in the GCC and that our clients remain fully committed to
funding and completing their ongoing projects.”