Property News · February 14, 2016

Dubai contractor Drake & Scull reports Dh936 million loss for 2015



Dubai-based contractor Drake & Scull reported a Dh936.8 million loss for 2015, which it blamed on the “unprecendent measures” it had to take in the third quarter, where it was forced to make Dh984m in provisions relating to an continuing contractual dispute in Saudi Arabia.The company said that it had “normalised its profitability” following this, declaring a Dh14m fourth quarter profit as revenue climbed by 27 per cent to Dh1.4 billion (Q4 2014: Dh1.1bn).
However, full-year revenue dropped by 11 per cent to Dh4.2bn and despite winning Dh3bn worth of projects during 2015, its backlog fell by 18 per cent to Dh11.83bn by its year end.In a statement, the company said that it will continue to pursue debts and legal claims, adding that it “expects a number of provisions to be reversed in the future”. It has also begun a cost-cutting drive, arguing that it was committed to a “process of fiscal consolidation, discipline and austerity in light of the prevailing macroeconomic environment”.
“Despite the current challenging market conditions, the underlying long term growth outlook for the regional industry presents promising opportunities for DSI, particularly in the UAE,” the statement said.”DSI retains its optimism about the prospects for its engineering business, which is expected to remain the key growth driver for DSI, with an additional promising potential for the rail sector in 2016.”
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Source : thenational.ae
Read more…Dubai contractor Drake & Scull reports Dh936 million loss for 2015

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