Dubai’s Drake & Scull swings to Q2 net loss
Dubai’s Drake & Scull (DSI) swung to a second-quarter net loss as revenue shrank amid a slowdown in the construction sector.
The contractor made a net loss attributable to owners of the parent of 207.6 million dirhams ($56.6 million) in the three months to June 30, it said in a statement. This compares with a profit of 10.3 million dirhams in the year-earlier period.
EFG Hermes forecast DSI to make a quarterly loss of 11.4 million dirhams.
DSI had reported worsening earnings in eight of the preceding nine quarters that it blamed on a slowdown in the Gulf construction sector, including a substantial loss in the third quarter of 2015 due to provisioning.
DSI’s second-quarter revenue was 805.5 million dirhams, versus 1.29 billion dirhams a year earlier.
Total net loss reached 225.9 million dirhams, it said.