Dubai-based contractor Drake & Scull International (DSI) said on Monday it swung to a Q1 2022 loss, attributable to shareholders, of 52 million dirhams ($14 million) versus a profit of 115.4 million dirhams in the year-ago period.
Revenue for the period dropped to 23.9 million dirhams from 45.9 million dirhams in the year-ago quarter.
In a filing on Monday to the Dubai Financial Market, where its shares trade, the mechanical, electrical and plumbing (MEP) contractor said the reasons for the pivot "were liquidating bank guarantees and interest charges".
The company, which has sustained years of losses due to project cancellations and huge debt servicing costs, said its accumulated losses increased to 4.92 billion compared to 4.87 billion for the same period in 2021.
In March, the beleaguered company said it had completed a financial restructuring plan after reaching settlements with multiple lenders.
DSI’s chairman Shafiq Abdelhamid said on Monday the company was waiting for court approval for the plan to be implemented. Once the court process is completed, DSI would be able to issue the mandatory convertible sukuk, complete the rights issue and resume trading shares on DFM, he added.
DSI’s order backlog is currently at 380 million dirhams driven by ongoing operations in the UAE and abroad.
(Reporting by Brinda Darasha; editing by Seban Scaria)