Financial News

Year

Quarter

15-11-2017 Drake and Scull International Reports Q3 2017 Financial Results

New management continues to consolidate and streamline operations with renewed focus on UAE market

 

Q3 2017 Highlights

  • Recapitalization Program successfully completed
  • Tabarak Investment Injects AED 500 million in Equity
  • Debt restructuring expected to be concluded across key markets in Q4 2017
  • Q3 2017 Revenue stood at AED 590 million
  • Ongoing UAE projects portfolio contributes 42% of the company’s Q3 2017 revenue
  • The New Management conducts a projects commercial review and records additional provisions, revenue and margin adjustments for legacy projects across key markets
  • The lack of liquidity prior to the completion of the Recapitalization Program and to the Equity injection, impacted the overall productivity of projects and resulted in a Net loss of AED 359 million in Q3 2017
  • UAE project tenders in advance stages of negotiations expected to materialize in Q4 2017

 

 

 

 

 

UAE, November 14, 2017 - Drake & Scull International PJSC (DSI), a regional market leader in engineering and construction services, reported today (14 November 2017) its financial results for Q3 2017.

Revenue for the third quarter of 2017 stood at AED 590 million. The lack of liquidity prior to the completion of the Recapitalization Program and to the Equity injection by Tabarak Investment impacted the overall productivity of ongoing projects. Consequently, additional provisions, revenue, and margin adjustments were recorded across several markets resulting in a Net Loss of AED 359 million in Q3 2017.

ontinues to be the main revenue driver, with the debt restructuring positively progressing in the local market. The debt restructuring effort is expected to be concluded across key markets in the fourth quarter of 2017 enabling the Group to secure its funding requirements and to move forward with its turnaround plan.

Furthermore, the company revealed that the UAE project tenders in advance stages of negotiations are expected to materialize in Q4 2017.

The company’s quarterly financial results were released as the new leadership team continues to review projects and identify pertinent risks to mitigate its exposure on the operating and financial performance of the Group. The move represents another essential step in DSI’s operational restructuring, which will set the stage for improved and consistent performance in the coming quarters.

Rabih Abou Diwan, Investor Relations Director of Drake & Scull International said: “We expect our financial performance to normalize in the fiscal year 2018 in line with our continued pursuit of restructuring and reinforcing our operations. Our primary objective is to strengthen our financial position, to accelerate projects delivery and to improve the operational performance across all sectors.”

 “For the fourth quarter of 2017, we are confident that our performance will improve as we steam ahead with our restructuring program. We reassure our shareholders that we are on the right track to restore our leadership position in the mechanical, electrical, and plumbing (MEP) sector as the new board of directors remains fully committed to stabilizing the business and reinstating our trajectory for profitability and growth,” Abou Diwan concluded.


 





03-10-2017 Tabarak Investment Injects AED 500 Million in Drake & Scull International as part of the Capital Increase

Company announces successful completion of its Capital Restructuring Program

 

UAE, October 03, 2017 - Drake & Scull International PJSC (DSI), a regional market leader in engineering and construction services, announced today that it has successfully completed its capital restructuring program which started at the beginning of the fiscal year as part of its efforts to improve the financial position of the company and enhance operational efficiency.

 

The completion of the program and the entry of Tabarak Investment as a Strategic Investor will enable the company’s new leadership to move forward with its operational plans and focus on further enhancing its core competencies in the mechanical, electrical and plumbing (MEP) sector to steer the company to recovery and sustainable growth.

 

Engineer Abdulla Atatreh, Chairman of Drake & Scull International PJSC, said: “Completing DSI’s recapitalization program is a significant milestone for the company and reaffirms the dedication and the commitment of the new of board of directors in taking the necessary decisions that safeguard the interest of our shareholders and sets a solid foundation for the group to press ahead with key strategic initiatives to regain business momentum.”

 

“We are confident that this achievement will pave the way for the company’s newly-appointed leadership to map a clearer direction and position DSI to proactively seize regional opportunities in the MEP sector,” he added.

 

 “The completion of the program is a fundamental phase in rebalancing our capital structure and improving our liquidity and the new capital injection will be used to improve operations and accelerate projects execution, in addition to securing new project awards and pursuing opportunities to diversify our income and reinforce shareholders confidence.”

 

“The Securities and Commodities Authority and the Dubai Financial Market played a key role in supporting the execution of the capital restructuring program while exhibiting the highest standards of professionalism. Furthermore, Tabarak Investment will continue to support the company financially and strategically. Lastly, with the successful completion of the capital restructuring program, the share capital of the company stands at AED 1.07 billion and the total equity of the group increased by AED 500 million.” Atatreh concluded.





27-09-2017 Drake & Scull International Obtains Regulatory Approval for its Capital Reduction and the Listing of the New Shares

Company confirms dates for its 75% capital reduction and the listing of the 500 million new shares

 

 

UAE, September 26, 2017 - Drake & Scull International PJSC (DSI), a regional market leader in engineering and construction services, announced today further to the approval of the Capital Restructuring Program resolved upon by the shareholders at the second General Assembly meeting on 9 September 2017, regulatory approval has been obtained today and the designated date for the reduction of DSI’s share capital from AED 2.28 billion to AED 571 million is Monday 2 October 2017.

 

The Entitlement Date (the last day of trading before restatement) will be Sunday 1 October 2017. The Ex-Date when the number of shares is reduced and the share price restated (prior to the commencement of trading) will be Monday 2 October 2017 (or the first day of trading after the Entitlement Date).

 

The regulatory approval for the subsequent Capital Increase through the issuance of 500 million new shares to Tabarak Investment LLC has also been obtained. The 500 million new shares will be listed on the Dubai Financial Market on Sunday 1 October 2017 (after trading hours). Upon completion of the listing of the new shares the Share Capital of the Company will increase from AED 571 million to AED 1.07 billion.

 

 

Capital Reduction - Key Dates

 

Entitlement Date

(last day of trading before restatement)

Sunday 1 October 2017

Share number and share price restated

(prior to the commencement of trading)

Monday 2 October 2017

*Before Trading hours

 

 

Capital Increase & Listing of the 500 Million New Shares - Key Dates

 

Listing of the New Shares

Sunday 1 October 2017

*After Trading hours