UAE-based contractor, Drake & Scull International (DSI), reported a net loss for Q2 2017, which reduced by 12% to AED199mn as compared to AED226mn during the same period last year.
Revenues for the quarter stood at AED660mn compared to AED806mn recorded for the same period last year. The revenue achieved for the quarter is consistent with the parameters of the financial targets set forth by the group at the outset of the fiscal year and is reflective of a sustained performance in key markets, mainly the UAE.
As of June 30, 2017, the group has a diverse order backlog of AED6.6bn and is in the advanced stages of negotiation for new orders, with the latest project wins expected to be announced during the second half of the year.
The Capital Restructuring Program is steaming ahead on schedule and is set to be concluded by the end of Q3 2017. Phase 1 of the program (capital reduction) will be concluded in few weeks with the approval for the issuance of the new equity to Tabarak Investment expected to be completed in September. Phase 2 will see the groups capital increase by AED500mn with Tabarak Investments entry as a strategic investor.
Tabarak Investment, currently the largest shareholder of DSI, recently reaffirmed its commitment to the company and extended an interest-free Qard Hasan loan of up to AED100mn to the group. The loan will be directed towards DSIs working capital requirements to accelerate projects performance and delivery as it proceeds with its Capital Restructuring Program.
Feras Kalthoum, acting CFO, DSI, said: The results of the quarter should be viewed within the context of our turnaround plan and the capital restructuring program and are consistent with our financial targets set out at the outset of the fiscal year. Our efforts to complete the Capital and Debt Restructuring of the group coupled with continued balancing of our portfolio to mitigate any contingent exposure that may impact our future profitability will soon reflect positively on our financial performance and top line targets.
Mohammed Atatreh, board member, DSI, added: The year 2017 will continue to be a transitional year for DSI as we proceed with the execution of our turnaround plan. Our efforts to streamline our operations and restore our financial position will enable us to set solid foundation for sustainable growth. The continued support of Tabarak Investment has enabled us to maintain good progress year to date, keeping us on track to set up the Group for growth in 2018 and beyond. We look forward to shifting our focus on aggressively delivering and growing our order pipeline and invigorating our industry leadership.