Press Releases

Year

Quarter

13-09-2017 Drake & Scull’s new Board of Directors elects Abdulla Atatreh as Group Chairman & Ahmed Saeed Al Hamiri as Vice Chairman


UAE, September 12, 2017 -
Drake & Scull International PJSC, a regional market leader in engineering and construction services, has announced that its newly-elected Board Members have convened for the first time today (Tuesday, September 12, 2017). The Board ratified a series of procedural decisions necessary for the company to conduct business as required and chose new committee members from among its ranks. The second General Assembly Meeting convened earlier on the 9th of September 2017 and ratified the appointment of the new Board Members and elected additional Members to fill the vacancies resulting from the resignation of the former Board Members.

 

During today’s meeting, the Board elected Abdulla Atatreh as the new Chairman; Independent Member Ahmed Saeed Al Hamiri as Vice Chairman; and Abdulla Fareed Algurg as new Board Member. Algurg replaces the vacant seat of Majid Al Ghurair who resigned during the recent General Assembly Meeting held on the 9th of September 2017. At the executive level, Board Member Mohammed Atatreh was appointed as DSI’s new Managing Director. Members of DSI’s Audit, Nomination, Remuneration, and Investment Committees and the Secretary of the Board of Directors have been appointed as well.

 

During its inaugural meeting, the Board emphasized the completion of DSI’s capital restructuring program as a top priority to boost liquidity and stabilize the business. It also concurred on establishing a clear strategy for recovery and growth that will capitalize on the Group’s healthy project pipeline, industry stature, and the bullish industry outlook for the region.

 

Abdulla Atatreh, Chairman, Drake & Scull International PJSC, said: “The first official act of the new Board of Directors is to position the Company for new growth by establishing and following strict governance standards across all operating sectors to ensure consistent transparency, control and quality. We have also strategically appointed people that embody our vision of renewed growth for DSI. We want to adopt the right corporate mindset to ensure the swift and efficient completion of the Group’s turnaround strategy, which is currently in the final stages of the capital restructuring phase. We assure our partners, customers and all our other stakeholders that we will steer the DSI towards new and exciting opportunities to advance the Group’s industry leadership.”

 

The Board’s immediate goals include further organizational restructuring to achieve higher levels of efficiency, synergy and resilience. It is currently planning additional executive appointments to support DSI’s comprehensive turnaround strategy. 





21-08-2017 Drake & Scull secures AED 175 million deal in Dubai


UAE, August 21, 2017 -
Drake & Scull International PJSC, a regional market leader in engineering and related services, has confirmed that its general contracting subsidiary, Gulf Technical Construction Company (GTCC), has been awarded an AED 175 million contract by Orion Real Estate Development L.L.C. to build the latter’s latest project, the West Bay residential tower located at Dubai’s Business Bay.

 

The scope of work includes construction, civil engineering, and mechanical, electrical and plumbing (MEP) works scheduled for completion within 33 months. The West Bay residential tower is strategically located in the region’s new business capital, the Business Bay central business district, which is being developed as a commercial, residential and business cluster spanning a 5.9 million sqm area from Ras Al Khor to Sheikh Zayed Road. Once completed, the 34-storey West Bay residential tower will feature 252 residential apartments.

 

Mohammad Atatreh, Board Member, Drake & Scull International PJSC, said: “This deal is an excellent addition to the growing portfolio of our civil contracting subsidiary Gulf Technical Construction Company which has emerged as a preferred general contracting partner in the UAE. We are pleased to pick up momentum in our project awards in the UAE market and we are currently accelerating our bidding activities to secure additional work primarily in the MEP sector.”

 

GTCC is involved in several high-profile UAE projects and is currently executing The Pointe project, a new retail and entertainment complex at the Palm Jumeirah in addition to Maliha Hospital and Al Reef Residences Tower in Dubai.




16-08-2017 DSI to Proceed with AED 233 million MEP Works for Waterfront Fairmont Abu Dhabi Hotel & Serviced Apartments


UAE, August 16, 2017 - Drake & Scull International PJSC, a regional market leader in engineering and related services, has announced that it will proceed with the Mechanical, Electrical and Plumbing (MEP) works for the Fairmont Abu Dhabi Hotel and Serviced Apartments under an AED 233 million contract. Strategically located adjacent to the landmark Marina Mall in Abu Dhabi, the Fairmont Abu Dhabi Hotel and Apartments Towers are owned by Abu Dhabi-based National Investment Corporation.

 

Mohammad Atatreh, Board Member, Drake & Scull International PJSC, said: “Our work for Fairmont Abu Dhabi Hotel and Serviced Apartments reflects the high confidence in our services and capabilities within the local and regional property and tourism sectors, particularly in terms of hospitality development and MEP execution. It also highlights DSI’s involvement in strategic projects that are reinforcing Abu Dhabi’s regional and global stature as a preferred leisure and lifestyle destination. We look forward to extending our support to this major local development.”

 

The AED 1 billion iconic development is a 39-floor Arabian themed arched structure located near Marina Mall in Abu Dhabi. It occupies an overall area of 178,000m2 with an extensive water frontage. The project's scope of work consists of the 39-storey tower comprising of 563 rooms in the five-star hotel and 249 serviced apartments. The project features a network of sea water canals where guests can travel in specially designed Arabic boats. The opulent Fairmont Gold rooms and lounge will be situated on top as the bridge between the hotel and residences. The project is scheduled for completion and handover in 2018.





14-08-2017 DSI reports results of its Board Meeting

The Company forges ahead with the capital restructuring program, adopts strategic measures to improve liquidity and undertakes further provisioning against legacy projects

 

 

 

Key Highlights

 

 

  • Tabarak Investment reaffirms its commitment to DSI, acquires majority stake from former CEO and extends an interest-free‘Qard Hasan’ loan of up to AED 100 million to the Group
  • Capital Restructuring Program progressing on schedule and is set to be concluded by the end of Q3 2017
  • Ongoing talks with Banks on Debt restructuring to improve liquidity by extending new credit facilities and by negotiating extended medium to long term schemes for recourse and non-recourse loans
  • Continued progress in the disposal and monetization of non-core assets
  • Net losses for Q2 2017 reduced by 12% to AED 199 million as compared to AED 226 million during Q2 2016
  • Further one-off provisions and impairments charges of AED 68 million undertaken in Q2 2017 resulted in AED 199 million in Net loss for Q2 2017
  • Successful strides in operational restructuring and cost savings, reducing normalized SG&A by AED 5 million year-on-year
  • Total backlog stands at AED 6.6 billion as of 30th June 2017 mainly in the MEP sector

 

UAE, August 13, 2017 - Drake & Scull International PJSC, a regional market leader in engineering and related services, has reported the results of its Board meeting held on 13th August 2017 including the financial results for Q2 2017 as it continues to execute its Capital Restructuring Program aimed at streamlining its financial position to improve operational performance and to restore the profitability of the Group.

 

Revenues for the quarter stood at AED 660 million compared to AED 806 million recorded for the same period last year.  The revenue achieved for the quarter is consistent with the parameters of the financial targets set forth by the Group at the outset of the fiscal year and is reflective of a sustained performance in key markets mainly the UAE.

 

The Net loss of the quarter stood at AED 199 million as a result of the AED 68 million additional one-off provisions and impairments charges undertaken during Q2 2017. The provisions recorded in the quarter characterizes the strategic direction of the Group aimed at mitigating all contingent exposures to set a solid foundation for sustainable growth and profitability post completion of the Capital Restructuring Program.

 

The Group’s Board in its meeting to review and approve the financial results, also resolved to terminate the services of the CEO – Mr. Wael Allan. The Board also approved the resignations of several Board members including that of former Exeutive Vice Chairman Khaldoun Al Tabari.

 

The Capital Restructuring Program is steaming ahead on schedule and is set to be concluded by the end of Q3 2017. Phase 1 of the program (capital reduction) will be concluded in few weeks with the approval for the issuance of the new equity to Tabarak Investment LLC expected to be completed in September. Phase 2 will see the Group’s capital increase by AED 500 million with Tabarak Investment’s entry as a Strategic Investor.

 

Tabarak Investment LLC currently the largest shareholder of DSI,  recently reaffirmed its commitment to the Company and extended an interest-free‘Qard Hasan’ loan of up to AED 100 million to the Group. The loan will be directed towards DSI’s working capital requirements to accelerate projects performance and delivery as it proceeds with its Capital Restructuring Program.

 

The Group advanced with the disposal of its non-core assets and has also finalized negotiations for the release of the remaining funds from the sale of its One Palm investment in Dubai in Q3 2017. The funds along with the fresh equity infusion from Tabarak Investment will help restore the liquidity of the Group, enabling DSI to successfully execute its projects backlog and improve productivity across all operating segments.

 

As of 30th June 2017, the Group has a diverse order backlog of AED 6.6 billion and is in the advanced stages of negotiation for new orders, with the latest project wins expected to be announced during the second half of the year.

 

 

Feras Kalthoum, Acting CFO, Drake & Scull International, said:

 

“The results of the quarter should be viewed within the context of our turnaround plan and the capital restructuring program and are consistent with our financial targets set out at the outset of the fiscal year.”

 

“Our efforts to complete the Capital and Debt Restructuring of the Group coupled with continued balancing of our portfolio to mitigate any contingent exposure that may impact our future profitability will soon reflect positively on our financial performance and top line targets.”

 

 

Mohammed Atatreh, Board Member, Drake & Scull International PJSC, added:

 

“The year 2017 will continue to be a transitional year for DSI as we proceed with the execution of our turnaround plan. Our efforts to streamline our operations and restore our financial position will enable us to set solid foundation for sustainable growth.”

 

“The continued support of Tabarak Investment has enabled us to maintain good progress year to date, keeping us on track to set up the Group for growth in 2018 and beyond. We look forward to shifting our focus on aggressively delivering and growing our order pipeline and invigorating our industry leadership.”





01-08-2017 Consortium of Passavant Energy & Environment and Aziz Company for Contracting and Industrial Investment Secures SAR 268 Million Deal for South Dhahran Wastewater Treatment Plant in Saudi Arabia

The new Plant to treat 70,000 cubic meters of waste water per day

 

 

UAE, August 1, 2017 - Drake & Scull International PJSC, a regional market leader in integrated design, engineering and commissioning, procurement, construction and construction management, has announced today that a consortium of Passavant Energy & Environment (PE&E), its wholly-owned German water & energy technology solutions provider subsidiary, and Aziz Company for Contracting and Industrial Investment (ACCII), Saudi-based firm that specializes in civil and infrastructure projects, has been awarded a SAR 268 million contract for South Dhahran Wastewater Treatment Plant (WWTP) in Saudi Arabia.

 

The three-year contract has been awarded by the National Water Company (NWC) and as per the terms of the agreement, the duration of the project is two years for design and build (D&B) and one year for operation and maintenance (O&M). PE&E’s scope of work includes design, procurement and supply of equipment; installation; supervision; and commissioning of the plant process and related electro-mechanical works.

 

Upon completion, the plant located in Al Khobar, will treat 70,000 cubic meters of water per day, incoming from different areas within Dhahran Municipality where the water will be received through pipelines at specific delivery points and conditions.

 

Wael Allan, CEO, Drake & Scull International PJSC, commented:

 

 “This is a significant win for the company and a testimony to our exceptional ability in water and energy. Our core technical competency as a leading MEP provider combined with our sector knowledge and expertise in Water makes this project a perfect match for our strengths, where we plan to exceed expectations in the delivery of this project.”

 

Fares Khatib, Managing Director, Passavant Energy & Environment, added:

 

“PE&E is very pleased to collaborate with ACCII to undertake the execution of this important WWTP Project. This plant will be amongst the few in Saudi Arabia that harnesses bio-gas from the treated sludge to generate electricity to cover a major part of the Plant power needs.

 

“PE&E is capitalizing on its own proven pioneering process technology to minimize the plant life-cycle cost and increase the value added to our Client.”

 

“With PE&E’s global reputation and experience of over 150 years as engineering, procurement and construction (EPC) and process technology providers of WWTP projects, we seamlessly provide environmental friendly turnkey solutions to our valuable Clients. Through such key projects and innovative technology, we continue to strengthen our presence in Saudi Arabia and the wider GCC where we anticipate securing major deals in the future.”

 

The Austria-based engineering and consulting firm ILF-Tecon & Partners Engineering is the consultant for the project.





30-07-2017 Drake & Scull appoints Mohammad Atatreh as its Board Member


Renowned UAE entrepreneur to bring in valuable business acumen as board member of various distinguished organizations

 

UAE, July 27, 2017 - Drake & Scull International PJSC, a regional market leader in engineering and related services, has announced today the appointment of seasoned UAE entrepreneur Mohammad Atatreh as its Board Member during the Company’s Board meeting. Atatreh replaces Khalaf Sultan Al Daheri who resigned from his seat on the Board.

 

Atatreh was a Board Member of several leading UAE companies, including Tabarak Commercial Investment, where he played a strategic role in the management of the Company’s real estate development and construction portfolio. He is also part of the Board of Trustees of Al Falah University.

 

His inclusion in the Board continues a series of key Board appointments aimed at ensuring business continuity and at achieving the Group’s strategic objectives set forth in the business plan at the outset of the current fiscal year to reinforce stability and prepare the Group for a new phase of recovery and sustainable growth.