{"id":22943,"date":"2016-08-15T18:17:50","date_gmt":"2016-08-15T11:17:50","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=22943"},"modified":"2016-08-15T16:31:03","modified_gmt":"2016-08-15T09:31:03","slug":"dubais-drake-scull-blames-cancelled-contracts-and-tough-saudi-market-for-second-quarter-loss","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-drake-scull-blames-cancelled-contracts-and-tough-saudi-market-for-second-quarter-loss\/","title":{"rendered":"Dubai's Drake & Scull blames cancelled contracts and tough Saudi market for second quarter loss"},"content":{"rendered":"


\nDrake & Scull International (DSI) slipped to a loss of Dh207.6 million during the second quarter of 2016 (Q2 2015: Dh6.1m profit) as revenue dropped by 37 per cent year-on-year to Dh805m.The Dubai-based contractor blamed “contract cancellations and additional one-off provisions” for its plight, stating that the majority of these relate to problem contracts in Saudi Arabia. For the first six months of the year, the company reported a net loss attributable to its parent company of Dh197m, compared with a profit of Dh35.3m in the same period last year. Revenue for the first six months fell by 23 per cent to just over Dh1.8bn.The company said that the cancellations related to “individual, one-off projects” and had a minimal bearing on its ability to continue operating in Saudi Arabia.Khaldoun Tabari, the chief executive and vice-chairman of DSI, said: “Our financial results have been impacted due to the substantial provisions for project delays and cancellations over the last six months, brought on by clients principally based in Saudi Arabia. “We believe that these developments reflect the considerable challenges we have been facing across the region due to a very challenging macroeconomic environment.”He said the firm was starting to put in place “a new strategy to reposition ourselves as a leader in the market”.”We will also initiate fundamental changes to our group and leadership structure, which will be supplemented by a reorganisation and realignment of senior management roles,” he added.The company’s backlog has reduced by almost 30 per cent year-on-year to Dh9.37bn, but it pointed to a “noted improvement in revenue and operational performance on newly awarded projects” in the UAE, as well as a couple of important wins for its rail and infrastructure and energy divisions.Mr Tabari said that despite the challenges, DSI remained operationally and financially robust, and that he was “confident about the medium- and long-term prospects of the regional industry.”mfahy@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Dubai’s Drake & Scull blames cancelled contracts and tough Saudi market for second quarter loss<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Drake & Scull International (DSI) slipped to a loss of Dh207.6 million during the second...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-22943","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-5Y3","jetpack-related-posts":[{"id":4726,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-contractor-drake-scull-reports-dh936-million-loss-for-2015\/","url_meta":{"origin":22943,"position":0},"title":"Dubai contractor Drake & Scull reports Dh936 million loss for 2015","date":"February 14, 2016","format":false,"excerpt":"\r \r 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\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44119,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/contractor-drake-scull-to-raise-capital-after-loss\/","url_meta":{"origin":22943,"position":1},"title":"Contractor Drake & Scull to raise capital after loss","date":"February 14, 2017","format":false,"excerpt":"\r Drake & Scull International has become the second Dubai contractor in as many days to announce a capital raising after the company reported a Dh786.9 million loss for 2016.The company, which specialises in mechanical, electrical and plumbing work, said it had secured a commitment from Dubai-based investment bank Tabarak\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13092,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-drake-scull-q1-net-profit-falls-61-per-cent\/","url_meta":{"origin":22943,"position":2},"title":"Dubai's Drake & Scull Q1 net profit falls 61 per cent","date":"May 15, 2016","format":false,"excerpt":"\r Dubai's Drake & Scull (DSI) posted a 61 per cent fall in first-quarter net profit on Sunday, extending an earnings slump as its revenue declined.The contractor made a net profit attributable to shareholders of Dh9.8 million in the three months to March 31, it said in a statement. This\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23687,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-scull-international-shares-fall-sharply-in-dubai-as-it-reviews-business-activities\/","url_meta":{"origin":22943,"position":3},"title":"Drake & Scull International shares fall sharply in Dubai as it reviews business activities","date":"August 23, 2016","format":false,"excerpt":"\r Shares in Drake & Scull International (DSI) opened sharply lower on Tuesday morning, after the construction firm said it was reviewing business activities and seeking strategic investors after slipping into the red during the second quarter.DSI shares opened more than 2 per cent lower, after Reuters reported that the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4154,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/contractors-feel-the-pinch-as-saudi-government-goes-slow-in-awarding-contracts\/","url_meta":{"origin":22943,"position":4},"title":"Contractors feel the pinch as Saudi government goes slow in awarding contracts","date":"February 9, 2016","format":false,"excerpt":"\r \r The value of new contracts won by the Saudi contractor Abdullah A M Al Khodari & Sons last year fell by nearly 50 per cent as \"government entities did not proceed with awards\" in the run-up to its 2016 budget announcement in December.The company, which is based in\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4160,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/contractors-feel-the-pinch-as-saudi-government-goes-slow-in-awarding-projects\/","url_meta":{"origin":22943,"position":5},"title":"Contractors feel the pinch as Saudi government goes slow in awarding projects","date":"February 9, 2016","format":false,"excerpt":"\r \r The value of new contracts won by the Saudi contractor Abdullah A M Al Khodari & Sons last year fell by nearly 50 per cent as \"government entities did not proceed with awards\" in the run-up to its 2016 budget announcement in December.The company, which is based in\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/22943"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=22943"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/22943\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=22943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=22943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=22943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}