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Dubai's DSI posts Dh262m profit

Dubai - DSI recorded revenues of Dh681 million for the full year.

Dubai-listed construction firm Drake & Scull International (DSI) has returned back into black after it reported Dh262 million net profit for 2019 as compared to a huge loss of Dh5.1 billion for the previous year.
DSI recorded revenues of Dh681 million for the full year as against Dh798m in the previous year. While its backlog remained stable at Dh625million, which includes Dh309 million from joint ventures, driven by on-going operations in the UAE, Germany, Algeria, Kuwait and Iraq.
It achieved gross profit of Dh8 million in 2019 as compared to gross loss of Dh952 million in 2018.
Shafiq Abdel Hamid, chairman of DSI, said as a result of management's tenacity and efforts in stabilising the company, they will be able to complete the restructuring this year.
"The team at DSI has worked tirelessly for the past year to tackle the real challenges of dealing with the huge losses recorded in 2018, and the burden left by the previous management. The financial restructuring is progressing with the lead banks, and we have made real efforts to reach out to all the trade creditors ahead of finalising the restructuring proposal which will need the continued support of all stakeholders," he said.
Abdel Hamid said the company continues to engage with all of its stakeholders, including regulators, financial lenders, trade creditors and employees to ensure that DSI emerges from the last few years of difficulties as a strong UAE company.
Total negative equity has been improved from Dh4.748 billion in 2018 to Dh3.987 billion in 2019. - waheedabbas@khaleejtimes.com