Dubai: Drake & Scull an integrated design, engineering, and construction company reports a total profit of Dh115 million Q1 profit in comparison to a total loss of Dh30 million reported for the same period last year.
The company registered revenue of Dh46 million during the first quarter in comparison to Dh39 million for the same period in 2020.
The gross profit achieved was Dh5 million in comparison to Dh2 million for the same period in 2020. Profit from continued operations was Dh116 million, in comparison to a loss of Dh29 million for the same period in 2020.
The company’s calculated losses have decreased from Dh4.9 billion as of December 2020 to Dh4.78 billion.
Total negative equity has improved from Dh3.9 billion as of December 31 2020 to Dh3,794million. DSI recorded revenues of Dh46 million and the order backlog remained stable at Dh376 million, driven by ongoing operations in the UAE, Algeria, Tunisia, Palestine, India, Kuwait, Iraq, and Germany.
Financial restructuring
As for the recent development in relation to the financial reorganization of the company, Eng. 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. To finalize 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.”
When the creditors get the documents they will be approached to submit their vote to approve the restructuring plan. When endorsed by 66% (by value) of the creditors, with the help of the FRC, DSI will then, at that point, approach the Courts to obtain their approval which will tie all creditors and permit the rights issue process to be started.