Category Archives: Drake&Skull

DSI announces the appointment of Group Chief Executive Officer

Image (16) [Dubai, UAE – March 29 2018] – The Board of Directors of Drake & Scull International PJSC (“DSI” or the “Company”), a regional leader in engineering and construction services, announced the appointment of Dr Fadi Feghali as the Group Chief Executive Officer, with effect from 1st of April 2018. Dr Fadi currently manages DSI’s international business units since joining the company in October 2017, and he will be overseeing all aspects of strategy and business implementation for the global DSI Group of companies in his new role.

Dr Fadi is widely renowned as an EPC industry veteran in the region and currently manages DSI’s global subsidiaries and operations. Dr Fadi previously served as the Managing Director of Al Husam Group.  He holds a Bachelors and Masters in Civil Engineering from the Free University of Brussels, as well as a PhD in Civil Engineering from Heriot-Watt University, UK. Dr Fadi has over 30 years of experience in the management and development of multinational companies and mega projects, with expertise in environmental engineering across a broad spectrum of different sectors ranging from energy, utility, infrastructure to oil & gas.

Commenting on the appointment, Engr. Abdulla Atatreh, Chairman of DSI PJSC stated: “We are pleased to have Dr Fadi Feghali as the Group Chief Executive Officer for DSI. He is an esteemed expert in the EPC sector and has a stellar track record of leading the operations for complex and large-scale engineering projects in the region.

 We believe that our comprehensive organizational overhaul and structural reforms have reached a significant milestone with the appointment of Dr Fadi Feghali, who worked closely with the Board of Directors and the new management team that was appointed in October 2017 and played an important role in our rigorous assessment of DSI’s global businesses and their challenges.

 His performance driven vision, global experience, and business acumen will prove vital for DSI and we are confident that under his leadership, the company will tap into its vast potential of historic legacy and regional presence and leverage them to create a sustainable pipeline of growth-oriented outcomes.”

 Dr. Fadi said: “I thank DSI’s Board of Directors and the global management team for entrusting me with the honor of leading the DSI Group as the Group CEO.  DSI PJSC is a dynamic organization with a rich history that spans more than 135 years across Europe, MENA, and Asia, with an unmatched legacy of values, excellence, innovation, and a work ethic that remains second to none. In our five decades in the region, we have constantly evolved to meet the demands of an ever-changing business environment.  I am enthusiastic about the opportunities to build upon our base of engineering skills, global experience, and the region’s most talented and motivated workforce, as we aim to deliver improved results and generate value for our investors and partners.”

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Drake and Scull International Reports Q3 2017 Financial Results

New management continues to consolidate and streamline operations with renewed focus on UAE market

Q3 2017 Highlights

  • Recapitalization Program successfully completed
  • Tabarak Investment Injects AED 500 million in Equity
  • Debt restructuring expected to be concluded across key markets in Q4 2017
  • Q3 2017 Revenue stood at AED 590 million
  • Ongoing UAE projects portfolio contributes 42% of the company’s Q3 2017 revenue
  • The New Management conducts a projects commercial review and records additional provisions, revenue and margin adjustments for legacy projects across key markets
  •  The lack of liquidity prior to the completion of the Recapitalization Program and to the Equity injection impacted the overall productivity of projects and resulted in a Net loss of AED 359 million in Q3 2017
  • UAE project tenders in advance stages of negotiations expected to materialize in Q4 2017

UAE, November 15, 2017 – Drake & Scull International PJSC (DSI), a regional market leader in engineering and construction services, reported its financial results for Q3 2017.

Revenue for the third quarter of 2017 stood at AED 590 million. The lack of liquidity prior to the completion of the Recapitalization Program and to the Equity injection by Tabarak Investment impacted the overall productivity of ongoing projects. Consequently, additional provisions, revenue, and margin adjustments were recorded across several markets resulting in a Net Loss of AED 359 million in Q3 2017.

The ongoing projects portfolio in the UAE remains robust and continues to be the main revenue driver, with the debt restructuring positively progressing in the local market. The debt restructuring effort is expected to be concluded across key markets in the fourth quarter of 2017 enabling the Group to secure its funding requirements and to move forward with its turnaround plan.

Furthermore, the company revealed that the UAE project tenders in advance stages of negotiations are expected to materialize in Q4 2017.

The company’s quarterly financial results were released as the new leadership team continues to review projects and identify pertinent risks to mitigate its exposure to the operating and financial performance of the Group. The move represents another essential step in DSI’s operational restructuring, which will set the stage for an improved and consistent performance in the coming quarters.

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Rabih Abou Diwan, Investor Relations Director of Drake & Scull International said: “We expect our financial performance to normalize in the fiscal year 2018 in line with our continued pursuit of restructuring and reinforcing our operations. Our primary objective is to strengthen our financial position, to accelerate projects delivery and to improve the operational performance across all sectors.”

“For the fourth quarter of 2017, we are confident that our performance will improve as we steam ahead with our restructuring program. We reassure our shareholders that we are on the right track to restore our leadership position in the mechanical, electrical, and plumbing (MEP) sector as the new board of directors remains fully committed to stabilizing the business and reinstating our trajectory for profitability and growth,” Abou Diwan concluded.

DSI proceeds with the final preparations to secure the approval of the Securities and Commodities Authority to initiate the 75% share capital reduction

Capital Restructuring Program

Phase 1 – Share Capital Reduction

  • The 75% Share Capital Reduction is expected to be completed within 6 to 7 weeks
  • The Share Capital Reduction through the cancellation of 1,714 million shares will be on a pro-rata basis and will apply to all DSI shareholders and will allow the Company to extinguish its total accumulated losses attributed to the owners of the parent

Phase 2 – Share Capital Increase

  • Upon completion of the 75% Share Capital Reduction, the Company will consecutively initiate the regulatory and financial procedures to complete the AED 500 million Capital Increase
  • The Capital Restructuring Program is expected to be completed by end of Q3 2017, whereby “Tabarak Investment LLC” will become the major strategic investor in the Company

UAE, June 20, 2017 – Drake & Scull International PJSC (“DSI” or the “Company”), a regional engineering and services leader announced today, that it will proceed with the final preparations to secure the approval of the Securities and Commodities Authority (SCA) to initiate the 75% share capital reduction.

The Company is preparing to fulfil the regulatory requirements to initiate the share capital reduction and to subsequently effectuate the cancellation of 1,714 million shares to extinguish its total accumulated losses attributed to the owners of the parent.

The latest developments represent a critical progress in the capital restructuring program that will enable the Company to resolve its liquidity challenges and to execute its turnaround strategy to stabilise the business and to pursue its growth objectives in the regional MEP sector.

Feras Kalthoum, Acting CFO, Drake & Scull International PJSC, commented:

This is a major milestone in our turnaround strategy announced at the outset of the fiscal year 2017.”

“We are proceeding with the preparations at full speed to secure SCA’s approval and to initiate the share capital reduction to strengthen our balance sheet and to achieve the strategic objectives of our capital restructuring program.”

“I am confident that by the end of Q3 2017 we will complete our program and we will generate substantial liquidity to reinvigorate our operations and most importantly to secure high-margin projects in the MEP sector mainly in our home market the UAE.”