Drake & Scull posts net loss of $214.4m for 2016
Drake & Scull (DSI) reported a 2016 net loss of $214.4m, narrowing from a loss of $255m in the previous year
Dubai-based construction company Drake & Scull (DSI) reported a 2016 net loss of $214.4m, narrowing from a loss of $255m in the previous year, according to reports on Tuesday.
The company reported $871m (AED3.2bn) in revenue for 2016, shrinking to $1.1bn (AED4.2bn) from the previous year.
DSI’s net loss for the fourth quarter of 2016 amounted to $133m (AED490m), compared to a profit of $4m (AED14.7m) a year earlier, Reuters reported.
The contractor said in a statement that the financial results for 2016 were impacted by major revenue reversals, profit adjustments, cost overruns, and investment impairments, which were primarily caused by several disputed legacy projects in its Saudi Arabian construction business.
At the end of last year, DSI’s new management announced the initial steps of the company’s turnaround plan with the appointment of auditing firm PricewaterhouseCoopers (PwC).
Wael Allan, CEO, DSI, said: “Today, we are announcing the initial steps to stabilize and turn around our business. The capital reduction is an important milestone in our recapitalization program and is a strategic move to improve the balance sheet and the capital structure.”
DSI plans to expand its MEP business, aiming to complete key projects within the sector in the first half of the year.
“Whilst we continue to be impacted by various legacy issues, we are confident that our operations and financial position will gradually improve as 2017 unfolds,” Allan concluded.