Drake & Scull's accumulated losses approach 5 billion dirhams

Drake & Scull International, listed on the Dubai Financial Market, announced the size and percentage of its accumulated losses, and ways to address them.

The company indicated that its accumulated losses amount to 4.843 billion dirhams, which constitute 452% of its capital of 1.071 billion dirhams, according to a press release.

Drake & Scull explained that the main reasons that led to these accumulated losses were the provisions on projects in progress, and the contracts receivable in old projects in Oman and India, which were kept in the balance sheet despite the reservations of the external auditor since 2016 on the possibility of redeemed, and the entire value of the goodwill and trade name was written off on December 31, 2018.

She pointed out that the project delivery costs far exceeded the budgets, as a result of the poor performance in the old projects, as many bank guarantees were liquidated, which increased the accumulated losses.

The company said non-independent labor costs due to not winning new projects resulted from bank bans and court orders.

The company said that the measures that will be taken to address the accumulated losses include completing the restructuring process and the work plan, completing negotiations with banks and creditors, as well as enhancing productivity and operational efficiency.

Drake & Scull International announced during August 2021 the size and percentage of its accumulated losses, and ways to address them.

The company explained that the amount of accumulated losses it has amounted to 4.82 billion dirhams, which constitutes 451% of its capital of 1.071 billion dirhams.

Drake & Scull explained that the losses resulted mainly from the following provisions, projects in progress and receivable contracts in old projects in Oman, Egypt, India, Jordan and the UAE.

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