UAE’s Drake & Scull narrows losses in Q2

Dubai-based contractor Drake & Scull International (DSI) narrowed its net loss to AED 182.7 million in the second quarter of this year, compared to a loss of AED 207.6 million in the same quarter of 2016.

The loss was a result of the AED 68 million additional one-off provisions and impairments charges undertaken during Q2 2017, the company said in a statement to Dubai Financial Market.

Revenues for the quarter at AED 660 million, compared to AED 806 million in Q2 2016, were in line with the “parameters of the financial targets set forth by the group,” the statement said.

DSI said its capital restructuring program is on schedule and is set to be concluded by the end of Q3 2017. The firm had earlier announced that it has received an interest-free “Qard Hasan” loan of up to AED 100 million ($27.2 million) from Tabarak Investment, as part of its capital restructuring program.

The group has an order backlog of AED 6.6 billion, as of June 30, the statement said.

DSI is also in talks with banks on debt restructuring to improve liquidity by extending new credit facilities.