Dubai-based Drake & Scull International (DSI) has revealed a net profit of AED115 million ($31.3m) for the first quarter of the year, turning around a AED30m ($8.2m) loss for the opening three months of 2020.
Figures released on Sunday through Dubai Financial Market (DFM) also reveal revenues increased by almost 19 percent from Q1 2020 to reach AED46m ($12.5m); while profit from continued operations was AED116m ($31.6m), compared to a loss of AED29m ($7.9m) for the same period in 2020.
According to the statement, DSI’s order backlog remains “stable” at AED376m ($102.4m), “driven by ongoing operations in the UAE, Algeria, Tunisia, Palestine, India, Kuwait, Iraq and Germany”.
However, accumulated losses stand at AED4.786 billion ($1.3bn), although this has been reduced from AED4.902bn ($1.3bn) reported at the end of last year.
Earlier this year, DSI announced that documents were being finalised for its creditors to approve its long-awaited restructuring plan.
When approved, with the support of the Financial Reorganisation Committee (FRC), the company will then look to the courts to approve the implementation of the restructuring plan.
Shafiq Abdelhamid, chairman of DSI, said: “As previously reported, an agreement in principle was reached with a group of the largest lenders in early January 2021, the details of the overall commercial deal were subsequently presented to all creditors at the end of February and early March.
Shafiq Abdelhamid, chairman of DSI
“To finalise the deal there are numerous legal documents – compliance with both conventional and Islamic Sharia requirements – that are planned to be circulated to all 600-plus creditors very shortly. Once the creditors receive the documents they will be asked to submit their vote to approve the Restructuring Plan.
“When approved by two-thirds (by value) of the creditors, with the support of the FRC, DSI will then approach the courts to obtain their approval which will bind all creditors and allow the rights issue process to be initiated.”
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