Chairman and group CEO of Dubai-listed DSI resign
Obaid bin Touq is named new chairman as CEO replacement is sought
Dubai-listed contractor Drake and Scull (DSI) has appointed a new chairman, with its group chief executive officer (CEO) also resigning, a regulatory filing has revealed.
In a letter to Dubai Financial Market (DFM) on 25 December, the struggling contractor said its board of directors has accepted the resignation of Abulla Atatreh as chairman, agreeing to replace him with current independent board member Obaid bin Touq. The departing chair will, however, remain on the board.
The board, according to the same filing, also approved the resignation of Yousef Al Mulla as group CEO. A replacement has yet to be named.
“Until a replacement has been appointed, the management of the company will be carried [out] under the supervision of the board of directors,” the bourse missive added.
Al Mulla stepped into the group CEO role in August 2018, at the time replacing Dr Fadi Feghali, who served in the seat between March and that month.
The senior management changes come amid ongoing restructuring efforts to return DSI to profitability. DSI created a four-member committee in October 2018 to manage the next phase of its restructuring efforts. The announcement came after its board agreed in the same month to not dissolve the business.
According to figures from H1 2018, DSI's net loss stood at $49.8m (AED183m) during the period. The amount marks its a decline in profitability that was mainly attributed to cost overruns for non-performing subsidiaries in secondary markets.