Abu Dhabi: Drake & Scull International (DSI), a Dubai-based engineering and construction company, reported on Sunday Dh936.8 million in net losses for 2015, marking a significant plunge from the Dh100.7 million in profits reported in 2014.
Revenues for the full year reached Dh4.2 billion — down 11 per cent from the Dh4.76 billion recorded in 2014.
In the fourth quarter of the year alone, DSI reported a net profit of Dh14.7 million, compared to Dh3.8 million reported in the fourth quarter of 2014. Revenues for the last quarter of 2015 reached Dh1.4 billion — up from Dh1.1 billion in the same quarter of 2014.
The company said in a statement it was able to “normalise its profitability” following the Dh984 million provisions that were undertaken in 2015.
The provisions were related to “ongoing arbitration and legal cases in the UAE and KSA,” and were coupled with revenue and gross profit adjustments for “disputed extensions of time claims, accrued certified work, and other general provisions across several major projects in the GCC.”
DSI further stated that the group’s results for the fiscal year 2015 were “affected by the unprecedented measures undertaken in the third quarter of 2015 in response to the challenging market conditions, leading to the adoption of a conservative approach towards the company’s financial position in relation to its exposure on certain projects in key markets.”
The company said it will continue to pursue its outstanding receivables, and that it has initiated cost-cutting measures to improve efficiency. DSI also said it was working on reducing debt levels, improving capital structure, and boosting liquidity.
