Drake & Scull remains hopeful that a deal with creditors and lenders will give it more time to turn things around.

Dubai: Losses at Drake & Scull International – the Dubai engineering and projects company – widened to Dh88.35 million in the first-half of 2022 against a Dh77.54 million profit a year ago. In the second quarter, losses weighed down the company to the tune of Dh36.62 million.

The Group’s accumulated losses, as ‘reported by management as of 30 June 2022’, totaled Dh4.96 billion and its current liabilities exceeded its current assets by Dh4.10 billion.

Order backlog, court approval

However, DSI will point to the order backlog of Dh474 million as proof of its operational strengths, 'driven by ongoing operations in the UAE and overseas countries'. In a statement, Shafiq Abdelhamid, Chairman of DSI, said: “Further to our previous announcement on 23 May related to completing the restructuring process, we are currently focusing on obtaining the approval of the competent court to be able to implement the plan.

At the last hearing on 20th April 2022, the court decided to appoint an expert to review the procedure that has been taken by the company in relation with the requirements of the restructuring plan.

- Shafiq Abdelhamid of DSI

"The expert submitted his report confirming the company's ability to implement the restructuring plan."

Next key hearing

On September 5, the court has set the new hearing and the expert's review will be taken up and a decision taken on what next. "Once the procedures for the application submitted to the court are completed, the rest of the procedures agreed upon in the plan will be completed, including raising the company's capital and submitting a request to return the company's shares to trade" on DFM. (The stock was removed from trading in mid-2018.)

"We are grateful for the patience of our shareholders as we seek to restructure the company, thereby protecting as far as possible their investments and the livelihoods of many hundreds of families," the Chairman added. "We will continue to make all possible efforts to ensure that DSI PJSC shares will resume trading on the Dubai Financial Market after the completion of the restructuring.”