Financial News

Year

Quarter

15-05-2018 DSI Enhances Net Profit in Q1 2018

Company returns to achieving gross and operating profits during the quarter

 

Q1 2018 Highlights                  

  • Revenue stood at AED 693 Million
  • Gross Profit reported at AED 101 Million
  • Operating Profit reported at AED 45 Million
  • Achieved Net Profit of AED 7 Million
  • Total Projects Backlog stood at AED 5.4 Billion

 

[Dubai, UAE – 14 May 2018] – Drake & Scull International PJSC (“DSI” or the “Company”), a regional leader in engineering and construction services, reported today the results for Q1 2018. The overall revenue in the first quarter stood at AED 693 Million, as compared to AED 796 Million achieved in Q1 2017. Meanwhile, the company achieved an overall Net Profit of AED 7 Million for the same period, as compared to the Net loss of AED 839 Million declared during Q1 2017. The company also reported a Q1 2018 Gross Profit of AED 101 Million as compared to the Gross Loss of AED 49 Million reported during Q1 2017, as well as a Q1 2018 Operating Profit of AED 45 Million versus an Operating loss of AED 812 Million reported during Q1 2017.

DSI’s total project backlog stood at AED 5.4 Billion, supported by the AED 305 million worth of projects secured primarily in the home market (UAE) since January 2018.

The company attributes the improved results to the positive momentum achieved during the first quarter. Core metrics related to operational performance across key markets and segments showed signs of business stabilization. Through its ongoing business rationalization drive, the company also unlocked additional value in key areas, which were previously impaired by the impact of legacy issues on certain projects.

Rabih Abou Diwan, Investor Relations Director commented – “We are pleased to start the financial year with a return to profitability. The various reforms implemented by the new management have added significant strategic and operational impetus, in terms of efficiency and productivity measures achieved during the quarter. We will continue to leverage the synergies across our operating segments to improve our operating performance by reducing our overheads and by recalibrating our services portfolio to drive margin accretion.”

“Our target is to sustain our quarterly performance across all operating segments and key markets throughout the fiscal year and to secure profitable projects with our key strategic clients in the region.”






28-03-2018 DSI to Issue a Convertible Sukuk in Q2 2018 in Succession of the Recapitalization Program

[Dubai, UAE – March 28, 2018] – Drake & Scull International PJSC (“DSI” or the “Company”), a regional leader in engineering and construction services, announced today that it is targeting to issue a sukuk convertible into equity in Q2 2018.

 

On 27 March 2018, the DSI Board of Directors approved plans for the issuance of convertible sukuk with an indicative value of minimum AED 450 Million or the equivalent in other currencies, as private placement or public issuance to be converted to shares over a maximum period of 5 years, at a price of AED 3 per share or at a discount of 25% of the market price of the share, to be determined at the time of conversion.

 

The sukuk issuance is subject to regulatory and shareholders’ approval at the company’s upcoming General Assembly meeting, which is scheduled to convene in April 2018.

 

Rabih Abou Diwan, Investor Relations Director, Drake & Scull International PJSC, stated: “The sukuk issuance comes within the framework of the strategic plan approved by the Board of Directors of the company, as a succession of the restructuring and recapitalization efforts implemented to secure the required funding for the ongoing and future projects portfolio in the region.”

 

“The key objective is diversification of our financing; and the sukuk offers a sharia compliant platform that is appealing and reassuring to a larger spectrum of investors, and most importantly to our shareholders.”

 

“After the successful completion of our debt restructuring program across our key markets and the stabilization of the business in Q1 2018, our goal is to use the proceeds of the sukuk to enhance the operational capacity of the Group in the MEP sector. We are also concurrently working closely with our banks to secure the required working capital facilities for our new projects portfolio and the targeted project awards scheduled for announcement in April 2018.”






14-02-2018 DSI Announces Unaudited Preliminary Q4 2017 Results

Company returns to profitability and declares 11% quarterly increase in Revenues to AED 656 million and Net Profit of AED 0.7 million

 

Q4 2017 Highlights

  • Q4 2017 Revenues increases 11% to AED 656 Million compared to Q3 2017
  • Company returns to Profitability and records AED 0.7 Million of Net Profit for Q4 2017 compared to a Net Loss of AED 359 Million recorded in Q3 2017
  • Total Projects Backlog stands at AED 5.5 Billion as of December 31st 2017
  • New project awards valued at AED 494 Million secured during FY 2017

 

Dubai, UAE – February 13, 2018 – Drake & Scull International PJSC (“DSI” or the “Company”), a regional leader in engineering and construction services, reported today the preliminary unaudited financial results for Q4 2017.

 

Projects performance picked up momentum during Q4 2017 with the overall quarterly revenue increasing 11% to AED 656 Million compared to the preceding quarter (Q3 2017). The Company returned to profitability and reported a Net Profit of AED 0.7 Million for Q4 2017 compared to a Net Loss of AED 359 Million recorded in Q3 2017.

 

DSI’s total projects backlog stood at AED 5.5 Billion, supported by AED 494 million worth of new projects in the MEP and Water Treatment sectors secured in the UAE and KSA during the fiscal year.

 

DSI management continues to lay the foundation for an improved and sustained operational and fiscal performance, with a renewed focus on DSI’s core MEP business in its key markets (UAE and KSA).

 

The Company remains committed towards the realization of the recovery objectives set forth by the new leadership team appointed in Q4 2017 to steer the company back to recovery and growth. Several organizational restructuring initiatives were executed in the quarter to streamline operations, reduce cost and improve efficiency. The Company continues with its operational review across key markets and is undertaking key measures to mitigate contingent exposure of legacy projects.

 

 

The Group is also accelerating projects bidding in key markets across all sectors and is undertaking several proactive measures to regain market share and restore its leadership in the region.





17-01-2018 FTSE Russell raises Drake & Scull’s weight on index following positive December review

Upgrade sustains momentum of recent MSCI GCC Index inclusion, reflects success of recapitalization program

 

UAE, January 17, 2018 - Drake & Scull International PJSC (DSI), a regional market leader in engineering and construction services, has announced that the foreign ownership limit (“FOL”) used to calculate its free float weight on the FTSE Russell Index has been increased to 39% following a positive December 2017 review. The upgrade comes following DSI’s official inclusion in the MSCI GCC Index last month and reflects growing market confidence after the successful completion of the company’s major Recapitalization Program.

 

DSI’s stock is currently assigned a 39% FOL Free Float on the FTSE Russel Index but is expected to gain a 5% headway in March after the group’s efficient execution of a turnaround plan geared towards revitalizing financial and operational performance.

 

DSI’s entry into the MSCI GCC Index last November was welcomed by regional and international investors and analysts as a strong vote of confidence in the group’s market competitiveness. The move by FTSE Russell adds further credence to DSI’s strong market positioning and complements strategic initiatives currently being undertaken by the group to regain business momentum.

 

Rabih Abou Diwan, Investor Relations Director Drake & Scull International PJSC, said: “The upgrade by FTSE Russell marks a very positive step for DSI as we reorient the organization towards recovery and growth. It comes just a month after our inclusion in the MSCI GCC Index, affirming the resounding success of the turnaround plan we initiated last year. We are firmly committed to continue our comprehensive recovery and undertake more proactive measures to enhance our transparency, governance and efficiency.” 





08-01-2018 DSI completes UAE debt restructuring with announcement of continued support from Tabarak Investment

Company secures new credit lines for ongoing projects portfolio and new contract awards

 

 

Dubai, UAE; January 08, 2018 – Drake & Scull International PJSC (“DSI” or the “Company”), a regional leader in engineering and construction services announced today, that it has successfully completed the restructuring of its corporate general bank debt in the UAE and has secured new credit lines and working capital facilities for its ongoing and new projects portfolio.

 

DSI has obtained the support from all its creditors for the restructuring of its corporate general debt in the UAE. The company reached in Q4 2017 a consensual agreement with nine regional and local banks to refinance AED 566 million comprising 56% of its total corporate general debt standing at AED 1.07 billion as of September 30th 2017. The tenor and the maturity of the AED 566 million corporate general debt have been extended and re-termed on average for 3 years. Additionally, the Company successfully secured under the new term sheets signed on bilateral basis with all respective banks, new credit lines and working capital facilities for its ongoing and future projects portfolio in the UAE.

 

The remaining tranche of the Company’s corporate general debt comprising the AED 440 million Sukuk will mature in November 2019. The Company will initiate talks with its sukuk holders to refinance this tranche in the second half of the fiscal year 2018.

 

As of September 30th 2017, the total Bank Debt of the Group stands at AED 2.92 billion. Corporate general debt and projects debt comprise 34% and 66% of total bank debt respectively.

 

Another upcoming strategic priority of the Company's plan include the restructuring and refinancing of its projects debt with the initial focus on approximately AED 1 billion of funded projects debt in Saudi Arabia. The Company is concurrently in advanced talks with its creditors in KSA and expects to complete the refinancing of its Saudi projects debt in this quarter.

           

Rabih Abou Diwan, Investor Relations Director, Drake & Scull International PJSC, commented:

 

The latest deal with the Banks reflects the confidence in the DSI turnaround plan, the resilience of the Group’s business model and the positive outlook of the Company in the MEP sector, despite the cyclical challenges that impacted the regional construction industry.”

 

Our main objective is to drive a consensual restructuring plan with all our creditors across the region to rebalance our capital structure to be more efficient and conducive for our business plan and future prospects.”

 

The completion of our debt restructuring in the UAE will enable us to accelerate projects performance and delivery in Dubai and Abu Dhabi. This represents a key priority for the Group as we continue to streamline the business and unlock value across all operating segments.”

 

Furthermore, with the new corporate debt structure and the extended credit facilities along with the funding we have in place, the Company will be able to improve productivity, secure substantial contracts and boost revenue generation.”

 

We are concurrently also assessing our funding requirements for our ongoing and future projects across all markets. We expect to reach bilateral consensus with our lenders to refinance our projects debt and upon completion we will be considering syndication across all the debt structure in the fiscal year 2018.”

 

In conjunction with the completion of Drake & Scull's debt restructuring, Tabarak Investment has announced that it is moving ahead with its plans to support the operations of Drake & Scull International to achieve full operational recovery leading to sustainable growth. The company has assured that its investment in DSI is strategic and long-term, and that it will continue to support the latter by completing existing projects, studying new ones targeted through Tabarak, and looking for new opportunities to diversify and expand income. Tabarak Investment has confirmed a significant improvement in the efficiency of operations under the leadership of DSI’s new management, which will support the latter’s financial performance in 2018.