Dubai’s Drake & Scull terminates CEO after less than a year

Dubai contractor Drake & Scull International (DSI) has announced the termination CEO Wael Allen after less than a year.

The company said in a bourse statement that the board “resolved to terminate the services of the CEO – Mr. Wael Allan” during a meeting to review its second quarter results

It also approved the resignations of several board members including former executive vice chairman and CEO Khaldoun Al Tabari.

No reason was given for the decision.

Allan had been with the company since October when he was hired to lead turnaround efforts.

The former head of design and consultancy firm Arcadis Middle East replaced Al Tabari.

Read: Dubai builder Drake & Scull appoints new CEO

In its second quarter results, DSI reported a 12 per cent decrease in losses to Dhs199m ($54.1m) and an 18 per cent decline in revenue to Dhs660m ($179.7m)

“The results of the quarter should be viewed within the context of our turnaround plan and the capital restructuring program and are consistent with our financial targets set out at the outset of the fiscal year,” said acting CFO Feras Kalthoum.

In other announcements, the company said a capital restructuring programme was set to conclude as scheduled in the third quarter.

Read: Dubai’s DSI says capital reduction to be completed by end of Q3

It also reaffirmed a commitment from its largest shareholder, Tabarak Investment LLC, for an up to Dhs100m interest-free loan.

As part of turnaround efforts, the group said it had advanced its disposal efforts for non-core assets and finalised negotiations for the release of the remaining funds from the sale of its One Palm investment in Dubai in the third quarter of 2017.

Read: Dubai contractor DSI to put aside almost Dhs1bn for debt payments

“The funds along with the fresh equity infusion from Tabarak Investment will help restore the liquidity of the Group, enabling DSI to successfully execute its projects backlog and improve productivity across all operating segments,” it said.

The firm had an order backlog of Dhs6.6bn ($1.79bn) as of June 30 and is in advanced negotiations for new orders, according to the announcement.