Drake & Scull International (DSI), a regional market leader in integrated design, engineering and construction services sector, has recorded a net profit of AED115 million ($31.3 million) compared to a net loss of AED30 million ($8.2 million) for the same period last year.

 

Announcing the financial results for Q1 ended March 31, 2021, DSI said its revenue too jumped to AED46 million from last year's Q1 figures of AED39 million, while its gross profit rose to hit AED5 million compared to AED2 million last year.

 

Profit from continued operations surged to AED116 million compared to a loss of AED29 million last year, it added.

 

DSI pointed out that the group was successful in trimming its accumulated losses from AED4.9 billion as of December 31, 2020 to AED4.78 billion.

 

The Dubai contractor said its recorded revenues were seen at AED46 million and the order backlog remained stable at AED376 million, mainly driven by ongoing operations in the UAE, Algeria, Tunisia, Palestine, India, Kuwait, Iraq, and Germany.

 

DSI, which has sustained years of losses due to project cancellations and huge debt servicing costs, said its financial restructuring plans were proceeding as per schedule.  

 

Chairman Engineer Shafiq Abdelhamid said it was moving forward with the debt restructuring plans. 

 

"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," he stated. 

 

"To finalise 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. Once the creditors receive the documents they will be asked to submit their vote to approve the restructuring plan," he explained. 

 

"When approved by two-thirds (by value) of the creditors, with the support of the FRC, DSI will then approach the Courts to obtain their approval which will bind all creditors and allow the Rights Issue process to be initiated," he added.-TradeArabia News Service