DSI announces appointment of Yousef Al Mulla as new Group CEO

Dubai, UAE, 26 August 2018: Drake and Scull International (DSI) announced the results of its Board of Directors (BOD) meeting and the shared its highlights, in a Press communiqué.

The communiqué said DSI is devising a fresh restructuring plan that will carry forward the legacy of the ongoing restructuring and recapitalisation drive and ensure the continuity of the company and its ability to grow and win new business. The new plan, the communiqué added, will be considerate of the rights of all key stakeholders and will be announced in due course. In the communiqué, the BOD assured shareholders that it is exerting itself, and will continue to do so, to safeguard the best interests of all its shareholders and to ensure the seamless operation of the company and its continuity and financial results and the reflection on the return on shareholders’ equity.

According to the communiqué, in H1 2018, the company reported net loss at AED 183 million. The decline in profitability is mainly attributed to cost overruns recorded for non-performing subsidiaries in secondary markets, primarily in Oman, Qatar and Jordan, the communiqué said. The hike in finance cost to service project debt in secondary markets, was another main constituent for the quarterly losses, according to the communiqué. The next phase of the restructuring plan will entail scaling down operations in non-core businesses and non-performing business streams and increasing focus on core markets and profitable business streams, the communiqué said, adding that the company will be calling for a General Assembly Meeting and will set its agenda in coordination with the Securities and Commodities Authority in due course.