Dubai: Drake & Scull appoints new CEO amid fresh restructure
Dubai-based contractor, Drake & Scull International, appointed Yousef Al Mulla as the new group chief executive officer owing to a ‘fresh’ restructuring plan.
Mulla is expected to assume his responsibilities from August 26, 2018, and will take over from current Group CEO Dr. Fadi Feghali who will be assuming a new role with the DSI Group which will be announced in due course.
An industry veteran, Mulla, was previously the CEO of Square General Contracting and has served as the managing director for Transemirates Contracting Company.
Drake & Scull International also recorded an overall net loss of AED183mn in the first six months of 2018, which it attributed to the performance of subsidiaries in secondary markets primarily in Oman, Qatar, and Jordan in Q2 2018. Defaults on projects debt obligations and arrears in the secondary markets also resulted in a significant hike in finance cost and negative margin impacts.
The contractor attributed the quarterly losses to non-core geographies and affirmed that the underlying performance of the UAE market remains relatively stable.
The board of directors further reviewed the strategic objectives of a new restructuring plan that is being prepared, which will constitute an evolution of the ongoing restructuring and recapitalisation efforts that commenced in 2016 and continued throughout 2017 and 2018. The comprehensive plan will be drawn to address the company and its global subsidiaries across its core and non-core geographies. The plan will be considerate of the rights of all stakeholders including financial institutions, suppliers and vendors, as well as current and past employees of the
company, to ensure business continuity as one of two UAE entities in the contracting sector listed in the local financial markets.
The contractor will obtain the necessary regulatory approvals and coordinate with the competent authorities to ensure the success of the plan and its timely execution. The board further assured shareholders that it is exerting all its efforts and will continue to do so to safeguard the best interests of all its shareholders and to ensure the seamless operation of the company and its continuity and financial results and the reflection on the return on shareholders equity.
Drake & Scull International announced that it will be calling for a General Assembly Meeting and will set its agenda in co-ordination with the Securities and Commodities Authority in due course.
