Dubai’s Drake & Scull 2016 net loss narrows to Dhs787m

Dubai construction firm Drake & Scull reported a 2016 net loss of Dhs786.9m ($214.4m) on Tuesday, narrowing from a loss of Dhs938.8m in the previous year.

Revenues shrank to Dhs3.24bn last year from Dhs4.2bn in 2015. The contractor’s net loss for the fourth quarter of 2016 amounted to Dhs490m, compared to a profit of Dhs14.7m a year earlier.

Drake & Scull also said that as part of its turnaround and capital restructuring plan, it was considering proposing a rights issue of Dhs500m in equity to a strategic investor, and that it had secured a binding offer from United Arab Emirates-based Tabarak Investment.

Like other construction firms in the region, the company has been hit hard by tough competition in the sector and an economic slowdown caused by low oil prices.