Drake & Scull swings to AED 208 mln net loss in Q2

Dubai-listed contractor Drake & Scull International (DSI) reported a net loss of AED 207.6 million in the second quarter of 2016, compared to a net profit of AED 10.26 million in the same period last year.

Losses for the quarter were mainly attributed to project cancellations and a prolonged slowdown in the region’s construction sector, the company said in a statement to Dubai Financial Market (DFM).

The total impact of project cancellations, additional one-off provisions and adjustments taken in Q2 amounted to AED 192 million. 

Revenue reached AED 805 million during the quarter, while the total value of project awards secured stood at AED 227 million.

In the first half of 2016, the contractor swung to a AED 197.8 million net loss from a AED 35.3 million profit in the same period last year.

Drake & Scull’s revenue declined 23 percent year-on-year (YoY) to AED 1.83 billion in the first half, due to “significant contraction and prolonged volatility in the regional construction sector, the slow progress on ongoing projects, a decline in new project awards, and adjustments across key markets in the GCC,” it added.