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Home / Drake & Scull reports Dh869mn revenues in Q3 2016

Drake & Scull reports Dh869mn revenues in Q3 2016

Drake & Scull (DSI) third quarter 2016 revenue was Dh869 million compared to Dh 434 million recorded in the third quarter of 2015.The company posted a net loss of Dh81 million as compared to a net loss of Dh985 million for the same period last year.

The third quarter 2016 losses reflects the prolonged weakness of the construction sector in key markets such as Saudi Arabia, Qatar, and – to a lesser extent – the broader GCC and Middle East regions. It also highlights the operational delays of certain ongoing projects and a slower backlog execution in the Kingdom of Saudi Arabia (KSA) and the Levant region resulting in cost overruns particularly in the civil sector.

For the first nine months of the year, the company reported revenues of Dh 2.7 billion and a net loss of Dh297 million versus Dh2.8 billion and net loss of Dh951 million reported last year.

The Company continues to cut costs aggressively with third quarter core SG&A, before accounting for provisions, reduced by Dh11 million, a decline of 16 per cent year-on- year. In the first nine months of 2016, SG&A was reduced by a total of Dh43 million, a decline of 19 per cent year-on-year.

In the third quarter, the management appointed a financial advisor to assist the company on a number of business transformation and strategic initiatives.