Dubai-listed Drake & Scull International (DSI) has reported revenues of AED1.8bn ($498m) for the first six months of this year, marking a 23 per cent decline compared with the same period in 2015.

The fall in revenue is due to the “significant contraction and prolonged volatility in the regional construction sector”, said a company statement on the Dubai Financial Market (DFM).

DSI also reported net losses of AED216m for the first half of this year, compared with a net profit of AED34m in the same period last year.

The statement added that DSI’s ongoing projects order backlog stood at AED9.4bn as of 30 June, compared with AED13.2bn in the same period last year. The company attributed the decline in backlog to adjustments in the Saudi market that have seen several projects cancelled.

DSI managed to secure AED570m-worth of new schemes so far this year, including the AED343m Doha Metro Depot and Stabilising Yards contract as well as the AED227m Zubair oil field project in Iraq.

“We will initiate fundamental changes to our group and leadership structure, which will be supplemented by a reorganisation and realignment of senior management roles as part of our efforts to enhance and streamline our operative framework,” Khaldoun Tabari, CEO and vice-chairman of DSI said in an earnings release.