Dubai-listed Drake & Scull Q1 income sink, Arabtec narrows loss


Dubai-listed contractor Drake & Scull (DSI) posted a sixty six per cent fall in first-quarter internet revenue on Sunday (Might 15), as a slowdown continues to grip the development sector within the area.


The corporate reported a internet revenue of AED9.fifty two million within the three months to March 31as in comparison with a internet revenue of AED27.85m made in the identical interval in 2015, it stated in a press release.


DSI’s income in the course of the interval underneath evaluation was AED1.03 billion, down 7.2 per cent from AED1.11bn a yr earlier.


The contractor had made losses in seven of the previous eight quarters.


Throughout This fall of the final yr, it posted internet revenue of AED14.7m, a bounce from AED3.8m within the corresponding interval in 2014. Nevertheless, the corporate made a internet lack of AED936.7m for the complete-yr 2015, in contrast with a internet revenue of AED100.7m reported for the earlier yr.


DSI’s complete backlog stood at AED11.3bn, as in comparison with AED13.8bn reported throughout the identical interval in 2015, the corporate stated.


Khaldoun Tabari, CEO and Vice-Chairman of Drake & Scull Worldwide, stated he was “happy to start out 2016 on a constructive notice by returning to profitability within the first quarter of the yr”. Nevertheless, Tabari stated he stays “cautious concerning the financial prospects of the area within the brief and midterm”.


On the identical day, Arabtec Holding, one other main development group listed on Dubai Monetary Market, reported its sixth straight quarterly loss.


The development agency made a internet lack of AED46.4m through the first three months of 2016, which is, nevertheless, was approach down from a lack of AED279.8m in the identical interval final yr.


Arabtec’s quarterly income was AED1.94bn, up from AED1.79bn a yr earlier.


In April, Mohamed Al Rumaithi, Chairman of Arabtec, which made a internet lack of AED2.35bn in 2015, stated that his firm might break even this yr and will make a revenue the subsequent yr.


“2015 was a extreme yr, 2016 continues to be robust. I’m assured of 2017, that’s once I see (revenue),” stated Al Rumaithi on the time.


He had added that the corporate was contemplating choices to chop prices, together with by way of job cuts, to counter troublesome market circumstances.


Drake & Scull shares fell 2.7 per cent and Arabtec slid per cent in response to the outcomes.


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Supply: Press Launch