Company is struggling with challenging market conditions
- Drake & Scull International reports net losses of $268m
- Firm plans to sell non-core assets
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 years 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 DSIs major markets.
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