Drake & Scull records losses for third quarter

16 November 2015

Company is struggling with challenging market conditions

Dubai-listed Drake & Scull International (DSI) has reported net losses of AED985m ($268m) for the third quarter of this year compared to a net profit of AED21.37m ($5.81m) for the same period in 2014.

DSI said its first quarterly loss of the year was mainly due to one-off provisions and revenue adjustments in the “current challenging market conditions.”

The company also said its revenue for the first nine months fell to AED2.83bn ($770m) from last year’s AED3.6bn ($979m).

“The decline is due to the more conservative approach to revenue recognition and to adjustments for uncertified variations orders and disputed extensions of time claims,” said a company statement.

The statement added that DSI plans to sell its non-core assets to generate cash and boost liquidity.

The Dubai firm pointed out that the current “challenging macro-economic environment; characterised by weaker oil prices, a slowdown in the construction sector and a more competitive landscape” had caused developers and clients to defer payments and delay projects across DSI’s major markets.

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