Drake & Scull's net profit hits $71.3m for FY 2019, after years of losses
DSI recorded revenue of $185.4m (AED681m) for the full year and the backlog remained stable at $170.16m (AED625m)
Dubai-listed contractor Drake & Scull International (DSI) has revealed its audited financial results for the year ending December 2019, reporting a net profit of $71.33m (AED262m) during the period, compared to a net loss of $1,386m (AED5,092m) recorded for the same period in 2018.
DSI recorded revenue of $185.4m (AED681m) for the full year and the backlog remained stable at $170.16m (AED625m), which includes $84m (AED309m) from joint ventures, driven by ongoing operations in the UAE, Germany, Algeria, Kuwait, and Iraq.
In 2019, the company re-focused on its core business activities of integrated design, MEP contracting, water and energy, oil and gas, while strengthening its balance sheets and financial position by reducing operational costs and closely monitoring its projects.
Gross profits for the period stood at $2.17m (AED8m), compared to a gross loss of $259.2m (AED952m) in 2018. Meanwhile, profit from continued operations reached $63.7m (AED234m) in 2019, compared to a loss of $1,342m (AED4,930m) in 2018.
Commenting on stabilising the company’s earnings, the chairman of DSI, Shafiq Abdelhamid, said: “The Board of Directors and I would like to thank the executive management for their vision, tenacity, and their tremendous efforts in stabilising the company which will enable the restructuring to be completed this year.
“I would also like to extend my thanks and deep gratitude to the Securities and Commodities authority for their efforts and continuous support. The team at DSI has worked tirelessly for the past year to tackle the real challenges of dealing with the huge losses recorded in 2018, and the burden left by the previous management.”
Abdelhamid added: “The financial restructuring is progressing with the lead banks, and we have made real efforts to reach out to all the trade creditors ahead of finalising the restructuring proposal which will need the continued support of all stakeholders. Once the restructuring is complete it will position DSI so as to be able to regain its position as profitable international MEP contractor.
“Finally, we will continue to engage with all our stakeholders, including regulators, financial lenders, trade creditors and employees to ensure that Drake & Scull emerges from the last few years of difficulties as a strong UAE company.”