Dubai: Drake & Scull International (DSI) has appointed a new chief executive officer and announced it is continuing to develop a new restructuring plan after posting half-year losses of Dh183 million.
The firms attributed the losses to cost over-runs in non-performing subsidiaries in Oman, Qatar and Jordan.
It said a rise in the cost of financing to service project debt in secondary markets during the second quarter was also a contributory factor.
The half-year losses follow full-year losses of Dh1.39 billion in 2017.
Yousef Al Mulla will take over as Group CEO from August 26, replacing Dr Fadi Feghali, who was appointed in March this year.
In a press statement, the Dubai-listed engineering and construction firm said its new restructuring plan would be comprehensive and would “be considerate of the rights of all stakeholders including financial institutions, suppliers and vendors, as well as current and past employees of the company.”
It said the plan would ensure its continuity as one of only two UAE-listed contracting firms and that it will “obtain the necessary regulatory approvals and coordinate with the competent authorities to ensure the success of the plan and its timely execution.”
The statement added that its board of directors “further assures shareholders that it is exerting all its efforts and will continue to do so to safeguard the best interests of all its shareholders and to ensure the seamless operation of the Company and its continuity and financial results and the reflection on the return on shareholders’ equity.”