Dubai - Mubasher: Drake and Scull International Group (DSI) announced that is has a diverse order backlog of AED 6.6 billion and is in the advanced stages of negotiation for new orders.
The company’s latest project wins are expected to be announced during the second half of the year, according to the company’s statement on Monday.
Tabarak Investment, currently the largest shareholder of DSI, recently reaffirmed its commitment to the company and extended an interest-free loan of up to AED 100 million to the Group.
The loan will be directed towards DSI’s working capital requirements to accelerate projects performance and delivery as it proceeds with its Capital Restructuring Program.
Drake and Scull advanced with the disposal of its non-core assets and has also finalized negotiations for the release of the remaining funds from the sale of its One Palm investment in Dubai in the third quarter of 2017.
The funds along with the fresh equity infusion from Tabarak Investment will help restore the liquidity of the group, enabling DSI to successfully execute its projects backlog and improve productivity across all operating segments, the statement explained.
Drake and Scull International's losses reached AED 1.03 billion in the first half of 2017, while losses went down by 12% year-on-year during the second quarter of 2017, according to the company’s statement to the Dubai Financial Market (DFM) on Monday.
The acting chief financial officer (CFO), Feras Kalthoum said that “the results of the quarter should be viewed within the context of our turnaround plan and the capital restructuring program and are consistent with our financial targets set out at the outset of the fiscal year.”
“Our efforts to complete the Capital and Debt Restructuring of the Group coupled with continued balancing of our portfolio to mitigate any contingent exposure that may impact our future profitability will soon reflect positively on our financial performance and top line targets,” added Kalthoum.
Board member Mohammed Atatreh said that “the year 2017 will continue to be a transitional year for DSI as we proceed with the execution of our turnaround plan. Our efforts to streamline our operations and restore our financial position will enable us to set solid foundation for sustainable growth.”
“The continued support of Tabarak Investment has enabled us to maintain good progress year to date, keeping us on track to set up the Group for growth in 2018 and beyond. We look forward to shifting our focus on aggressively delivering and growing our order pipeline and invigorating our industry leadership,” Atatreh further added.
