Drake and Scull International (DSI) incurred a net loss of AED 498 million ($135.58 million) in the third quarter of the year, largely due to a restructuring effort that has seen it hand over its legacy projects, it was announced on Wednesday.
In a statement, DSI attributed the operating law to the final phase of the close-out and handover of the company’s legacy projects, which form part of a large restructuring programme which includes the reassessment of all projects.
Due to this reassessment, DSI believes that several other legacy projects, which are due for closure and handover, may lead to further losses in Q4.
The company statement added that it is continuing to pursue measures to accelerate bidding and secure new projects, particularly in the UAE, with several fully-financed projected expected to be signed in over the next few months.
On October 22, DSI’s board approved the creation of a restructuring committee, which has now appointed advisers to help develop a new financial restructuring plan as it seeks to recover.
“The appointment of an experienced restructuring advisory team is an important step as we move forward with our financial and operational restructuring plan,” said group CEO Yousef Al Mulla.
“That team, working with our newly formed restructuring committee, will not shy away from taking the tough decisions necessary to refocus the business and, with support from our many stakeholders, restore the company to financial health.”
Al Mulla took as CEO from Dr Fadi Feghlani in August as the company reported a net loss of AED 183 million ($49.82 million) for the first half of 2018. Al Mulla was previously CEO of Square General Contracting and has served as the managing director for Transemirates Contracting Company.
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