Drake and Scull International (DSI), which successfully completed a comprehensive restructuring plan approved by the Dubai Court of Appeal, returned to profitability for the first quarter when it recorded net profits amounting to AED2.5 million (US$680,000) for Q1 2025.
The Q1 profit compares to a net loss of AED42.5 million (US$11.6 million) in Q1 2024.
The restructuring last year had resulted in liabilities write-back of AED3.79 billion (US$1.03 billion) and conversion of AED368 million (US$100 million) liabilities into Mandatory Convertible Sukuks.
Revenue remained stable year-on-year, improving marginally from AED30 million (US$8.17 million) to AED30.4 million (US$8.3 million).
General and administrative expenses rose to AED11.4 million (US$3.1 million) as against AED8.6 million (US$2.34 million) in Q1 2024, reflecting higher staffing, legal, professional, and business development costs due to the company’s growth and compliance activities.
Total assets reduced to AED634.3 million (US$172.7 million), down 1.9 per cent from AED647 million (US$176.2 million) in Q1 2024.
Drake and Scull International closed the quarter with a strong cash position of AED298.5 million (US$81.3 million) in unrestricted cash, reflecting prudent financial management. The movement in cash during the period was primarily due to strategic investments in property amounting to AED21.4 million (US$5.83 million).
Muin El Saleh, Group CEO of Drake and Scull International, commented: “Q1 results reflect progress in stabilising operations and executing our restructuring plan. The return to profitability underscores our focus on cost discipline, strategic project execution, and value creation for our shareholders. While challenges remain, our liquidity position and recent project awards provide a foundation for recovery.
“The Group is cautiously optimistic for the remainder of 2025. With the successful award of major projects, a streamlined cost structure, and stabilised operations, we expect further improvement in financial performance over the coming quarters.”
The 135-year-old Drake and Scull International delivers state-of-the-art projects and solutions across high-performance sectors, including electromechanical, integrated design, engineering, and construction, for water, power and oil and gas sectors and is involved from infrastructure development, waste-to-energy, data centre development, mechanical electrical and plumbing (MEP) to renewable energy.
