Dubai contractor Drake & Scull International PJSC (DSI) has reported a net loss of Dh46 million compared to a net loss of Dh119 million during the same period in 2023. DSI is reaching the end of its subscription period before its planned return to the Dubai Financial Market (DFM).
The company posted revenue of Dh30.6 million in Q1 of 2024, up from Dh19.7 million for the same period the year prior. It also reported a gross profit of Dh1.3 million compared to Dh1.1 million in Q1 of 2023.
DSI attributed the loss to the net financing cost of Dh39 million, which it claimed “will be reversed back in the accounting books upon successful completion of the restructuring process.”
The Dubai-based contractor obtained the green light to resume trading its shares on DFM after being suspended for five years. The DSI return was driven by the company’s agreement to write off 90% of the financial and trade creditors’ dues and increase the company share capital by Dh600 million to become about Dh3.47 billion.
“We are glad to announce that the restructuring process is expected to be completed soon – and the new IPO subscription which is limited to our existing shareholders only already started on 25 April 2024 and would be closed on 10 May 2024,” the DSI CFO said.
“We have full trust in all our existing shareholders to subscribe in the new capital raise and the new funds will be utilised in improving the efficiency and effectiveness of the working capital necessary to win new profitable projects in UAE and overseas countries in the future.”
Drake & Scull’s restructuring strategy is applicable to 4 entities:
- Drake & Scull International PJSC
- Drake & Scull International LLC
- Drake & Scull Engineering LLC
- Drake & Scull for Contracting Oil & Gas Fields Facilities LLC
The creditors of the four companies, including both financial and trade creditors, have agreed to a 90% write-off of their claims. Meanwhile, the remaining 10% balance of plan creditors whose total claims exceed Dh1 million will be exchanged by a mandatory convertible sukuk.