Drake & Scull International (DSI) said on Tuesday its restructuring process has reached its final stages as it announced a return to full-year profitability in 2020.
The contracting major said in a statement that it recorded a net profit of AED109 million compared to a net loss of AED87 million in 2019.
It added that the expert appointed by the Financial Reorganisation Committee has published invitations to creditors to attend meetings on February 25.
The company also announced a decrease in accumulated losses from AED5 billion dirhams to AED4.8 billion as of the end of December 2020.
Last year, an application by DSI to have its financial reorganisation process conducted under the supervision of the Financial Reorganisation Committee was approved and in May Aaronite Partners was approved as experts to take this forward.
DSI recorded operating revenue of AED216 million for the year, related to ongoing projects for the group while the backlog remained stable at AED403 million, represented by its ongoing operations in the UAE, Germany, Algeria, Kuwait and Iraq.
The company said the return to profitability “came as a result of the perseverance of the executive management in the company to improve the financial position and to ensure the continuity of the company’s operations by implementing the pillars of the restructuring plan and by reducing various administrative and operational expenses and closely monitoring projects’ productivity and operational efficiency to ensure competitiveness of the company in the future”.
Munir Mansour, CEO, confirmed that the company is working on expanding its operations in the field of oil and gas and focusing on completing its project in the city of Al-Zubair in Basra in Iraq and acquiring new projects in Kuwait and Egypt.
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