Dubai – Mubasher: Drake & Scull International (DSI) has incurred accumulated losses of AED 4.9 billion as of 31 December 2020, representing 458% of the company's capital.
The accumulated losses are driven by projects in progress and contract receivables in the company's legacy projects in Oman, India, and the UAE, according to the company's disclosure to the Dubai Financial Market (DFM) on Monday.
In addition, costs to hand over projects have exceeded budgets due to the poor performance of legacy projects whereby bonds were liquidated leading to a rise in accumulated losses.
To tackle the accumulated losses, the company will finalise a restructuring and business plans to write off the majority of debt and raise the capital to implement new projects.
DSI will also continue negotiating with the leading banks and creditors for a comprehensive settlement, alongside enhancing operational productivity and efficiency, pursuing legal cases, and collecting the receivables.
It is noteworthy to mention that in 2020, the company recorded AED 109.3 million net profits attributable to the equity holders, against AED 87 million net losses in 2019.