Dubai-based contractor Drake & Scull International (DSI) said on Monday it posted a loss in the first quarter of 2022, attributable to shareholders, of 52 million dirhams ($14 million) against a profit of 115 .4 million dirhams a year ago.
Revenue for the period fell to 23.9 million dirhams from 45.9 million dirhams in the prior year quarter.
In a filing on Monday at the Dubai Financial Market, where its shares are traded, the mechanical, electrical and plumbing (MEP) contractor said the reasons for the pivot “were the liquidation of bank guarantees and interest charges”. .
The company, which has suffered years of losses due to project cancellations and huge debt-servicing costs, said its cumulative losses had risen to 4.92 billion, from 4.87 billion for the same period in 2021.
In March, the beleaguered company said it had completed a financial restructuring plan after reaching agreements with several lenders.
DSI Chairman Shafiq Abdelhamid said on Monday that the company was awaiting court approval for the plan to go ahead. Once the legal proceedings are completed, DSI will be able to issue the mandatory convertible sukuk, finalize the rights issue and resume trading of shares on DFM, he added.
DSI’s order book currently stands at 380 million dirhams, driven by ongoing operations in the UAE and abroad.
(Reporting by Brinda Darasha; editing by Seban Scaria)