Dubai-listed contractor Drake & Scull International (DSI) has reported a net profit of 78 million dirhams ($21.2 million) for the first half of 2021.
The company’s revenue increased to 82 million dirhams from 78 million dirhams for the same period in 2020, a statement to the Dubai Financial Market (DFM) said on Wednesday.
As of June this year, accumulated losses amounted to 4.82 billion dirhams, compared to 4.9 billion dirhams at the end of December 2020.
The losses have been attributed to, among others, the work in progress and contract receivables in the company’s legacy projects in Oman, Egypt, Jordan, India and the UAE.
“As a result of poor performance on legacy projects, costs to hand over projects went far beyond budgets whereby several bonds were liquidated increasing the accumulated losses,” the statement said.
The company had previously decided to implement a restructuring plan to address the losses. In its statement on Wednesday, DSI reiterated that the plan is “progressing positively”.
“We have made good progress on the restructuring. We now have a fully documented legal agreement with a group of the largest lenders,” said Shafiq Abdelhamid, chairman of DSI.
“The details of the restructuring plan were presented to all creditors to initiate the voting, and we are progressing towards securing the required approval of two-thirds of creditors by value,” Shafiq said.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2021