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Drake & Scull’s project backlog stands at $2.18bn

With a backlog of approximately $2.18bn, and an annual burn rate in the region of $820m, Drake & Scull has more than two years of secured projects

Drake & Scull’s current project portfolio includes MEP works at Louvre Abu Dhabi (pictured above).
Drake & Scull’s current project portfolio includes MEP works at Louvre Abu Dhabi (pictured above).

Drake & Scull International’s (DSI) current backlog stands at approximately $2.18bn (AED8bn).

With an annual burn rate in the region of $820m (AED3bn), this means that the contractor has a secured project pipeline of more than two years, without accounting for new contract wins.

The company also succeeded in narrowing its net loss by $40.6m (AED149.1m) in 2016. DSI recorded a net loss of $214.4m (AED787.5m) last year, compared to the $255m (AED936.6m) deficit reported for 2015.

Speaking during an interview with Construction Week, Wael Allan, chief executive officer of DSI, said: “Our backlog stands at approximately $2.18bn (AED8bn), and our annual burn rate is in the region of $820m (AED3bn).

“That means we have a backlog of just over two years, and that’s without new [contract] wins,” he added.

DSI’s project portfolio includes a selection of high-profile GCC projects. The firm is providing mechanical, electrical, and plumbing (MEP) services for Louvre Abu Dhabi, UAE Presidential Palace, The Address Residence Fountain Views, and Al Habtoor City.

In Saudi Arabia, DSI is providing MEP services for Phase 3 of the Makkah Jabal Omar development. In Qatar, it has completed MEP works for Mall of Qatar, and is conducting similar activities on Msheireb.

Through its subsidiary, Gulf Technical Construction Company (GTCC), DSI is also delivering full general contracting services for Nakheel’s The Pointe development on Dubai’s Palm Jumeirah.

Earlier this month, UAE-based Tabarak Investment has agreed terms to inject $136.1m (AED500m) into DSI. Although the plan still requires shareholder and regulatory approval, Allan told Construction Week that the additional capital would serve to expedite both the contractor’s recovery and future growth.

“Tabarak represents a strategic investor for DSI,” he explained. “It not only brings in financial support, but it will also [help to inform] our operations. Tabarak has supported the restructuring of a number of companies that were in distress, and I feel that their past experience in this arena will be of great benefit to DSI.

“Moreover, I am keen to ensure that [this money] is spent on fresh opportunities. A [long-term approach] will be necessary in order to make DSI a sustainable business,” Allan added.

To read the full interview with DSI’s Wael Allan, check out issue 644 of Construction Week.

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Construction Week - Issue 749
Sep 15, 2019