REPORT BASED ON PRESS RELEASE BY: BY DSI ON NOV 09, 2023
Drake & Scull International PJSC (DSI) Reveals Q3 2023 Financial Results and Restructuring Update
Dubai, UAE – November 9, 2023: Drake & Scull International PJSC (DSI), a prominent regional leader in integrated design, engineering, and development across MEP, Water and Power, and Oil and Gas sectors, has unveiled its reviewed financial results for the third quarter ending on September 30, 2023. Despite facing challenges, the company reported notable developments alongside its financial figures.
During Q3 2023, DSI reported a Gross Profit of AED 7 million, marking a significant improvement from AED 4 million for the same period in 2022. Revenue achieved stood at AED 64 million, remaining consistent with the previous year’s figure. However, the company reported a loss from continued operations amounting to AED 195 million, compared to a loss of AED 158 million during the same period in 2022.
DSI managed to reduce its general and administrative expenses substantially, bringing it down to AED 23 million from AED 39 million during the same period in 2022, reflecting a remarkable 40% reduction. Despite these efforts, accumulated losses increased to AED 5,296 million compared to AED 5,098 million as of December 31, 2022. Total Negative Equity also saw an increase, reaching AED 4,261 million compared to AED 4,083 million as of December 31, 2022.
The losses incurred were primarily attributed to factors such as net financing costs, bond encashment, and ongoing commercial cases. These challenges are expected to be addressed upon the successful completion of the restructuring process.
DSI’s order backlog currently stands at AED 464 million, driven by ongoing operations both in the UAE and overseas countries.
Commenting on the announcement, Eng. Shafiq Abdelhamid, Chairman of DSI PJSC, stated, “With the recent approval of the agreed-upon restructuring plan by the Court of Appeal and the majority of creditors, we are now focused on completing the remaining procedures as outlined in the Court’s ruling and the approved restructuring plan.”
Upon meeting all the conditions set forth in the restructuring plan and in accordance with the court’s ruling, DSI will collaborate with the Securities and Commodities Authority and the Dubai Financial Market to resume trading its shares as soon as possible. Additionally, the company is committed to working on raising its capital in alignment with the restructuring plan during the first quarter of 2024.
Eng. Shafiq Abdelhamid expressed gratitude to shareholders for their patience throughout the restructuring process and reiterated DSI’s commitment to ensuring the resumption of trading on the Dubai Financial Market post-restructuring.
