Dubai: Drake & Scull an integrated design, engineering and construction company reported a net profit of Dh115 million Q1 profit compared to a net loss of Dh30million recorded for the same period last year.
The company reported revenue of Dh46 million during the quarter compared to Dh39 million for the same period in 2020.
Gross profit achieved was Dh5million compared to Dh2million for the same period in 2020. Profit from continued operations was Dh116 million, compared to a loss of Dh29 million for the same period in 2020.
Company’s accumulated losses have been reduced from Dh4.9 billion as of 31 December 2020 to Dh4.78 billion.
Total negative equity has improved from Dh3.9 billion as of December 31 2020 to Dh3,794million. DSI recorded revenues of Dh46 million and the order backlog remained stable at Dh376 million, driven by ongoing operations in the UAE, Algeria, Tunisia, Palestine, India, Kuwait, Iraq, and Germany.
As for the latest development related to the financial reorganization of the company, Eng. Shafiq Abdelhamid, Chairman of DSI, said: “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. To finalize 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. 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.