Dubai: Silver linings are starting to show up for Dubai engineering company Drake & Scull International, with new project wins in India and Tunisia.
These are valued at Dh376 million and will come in handy for the company to convince creditors that it can sustain itself operationally if allowed to restructure its debts. Shafiq Abdelhamid, Chairman, is convinced that a turnaround can happen for the company, which is also battling with accumulated losses of well over Dh4 billion.
“Through our focus on timely implementation, we have gained the confidence of investors and strengthening our pipeline of projects,” he said. “There has been a renewed emphasis on enhancing our operational efficiencies, reducing operating costs, and reorganising the operations to deliver our post-restructuring five-year business plan.”
According to market sources, Drake & Scull’s creditors should be in the mood to sign for a debt payment restructure. Such a vote of confidence will have wider ramifications for the UAE construction sector as well, already having to deal with the liquidation of its main contracting powerhouse Arabtec.
Drake & Scull is currently bidding for projects valued at Dh1.75 billion in Iraq and Kuwait, which if it wins, will “add to financial fundamentals”.
"Our new contracts and the successful completion of several projects underline our competencies to deliver world-class EPC and MEP works for complex projects in the power, water and oil and gas sectors,” the Chairman added. “Drawing on our years of experience, we continue to build our footprint – not just in the region but also in key international markets.
“This will drive the growth of our company in the coming months, as we successfully navigate the impact of the pandemic and focus on creating value for our stakeholders.”