UAE construction firm Drake & Scull cuts accumulated losses by Dh2 billion plus

27/03/2025 05:55 AST

The Dubai construction services firm Drake & Scull managed to cut accumulated losses from a crippling Dh5 billion to just over Dh2 billion as of end 2024.

The company said it continues to 'pursue legal cases to collect receivables'. In January, Drake & Scull won a minor victory after a UAE court ordered its ex-CEO and another official to pay Dh151.9 million.

"The previous liquidity crunch of the group led to major delay in closing the legal cases in favour of the company," DSI said in a statement.

Clearly, that's not the situation now.

DSI is also targeting bringing in the receivables from years past - "It is a continuous process and enhanced after closing the restructuring process," the company said in a statement.

The DSI restructuring plan was approved by a Dubai Court in late 2023 and put into place June of 2024.

A Dh1 billion contract portfolio in UAE
But it's on the operational side that the DFM-listed entity is making steady progress, lining up an alliance that would possibly deliver contracts in Egypt and Saudi Arabia. There was also a recent project win in India.

Within the UAE, awarded contracts worth Dh1 billion are on its books, 'reinforcing its market presence and future revenue stream'.

"With restructuring behind us, our focus is now on execution-delivering exceptional projects, rebuilding trust with our clients, and creating sustainable value for our shareholders," said Sheikh Theyab bin Tahnoun bin Mohammad Al Nahyan, Chairman of of DSI

"The AED 1 billion project award is a testament to the market's renewed confidence in DSI, and we see it as the first of many opportunities as we reenergize our business development pipeline. The UAE and broader GCC's infrastructure investment plans align seamlessly with our core strengths in engineering, construction, and specialized contracting."

A Dh3.76 billion profit for 2024
For 2024, the company has just issued its results, which shows a net profit of Dh3.76 billion from a loss of Dh267 million a year ago. Now, this had a lot to do with a write-back of liabilities of Dh3.79 billion that helped, which came about as the company implemented a restructuring plan approved by the Dubai Court of Appeal.

Revenues for 2024 2were Dh103.7 million, while the gross profit increased to Dh5.3 million.

"2024 marks a new chapter for DSI, as we successfully navigated one of the most significant restructurings in the industry," said Sheikh Theyab. "The strategic debt reduction and fresh capital injection have strengthened our balance sheet, enabling us to focus on sustainable growth."

Gulfnews