Drake & Scull removes CEO as it pares losses

LONDON: Dubai-based construction firm Drake & Scull has terminated the contract of its CEO Wael Allan after less than a year in the role.

The contractor on Monday posted a loss of 182.7 million dirhams ($49.7 million) for the second quarter. The board also approved the resignations of a number of members, including Khaldoun Tabari, former executive vice-chairman.

Allan was appointed to the role in October last year. He had previously been chief operating officer at the firm. The company reduced its losses by 12 percent in the second quarter, compared to a year earlier.

It follows a capital restructuring program, which according to the company, is progressing on schedule and due to be concluded by the end of the third quarter this year.

Feras Kalthoum, acting CFO, Drake & Scull International, said: “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.”

The first phase of the restructuring program is due to be concluded in a few weeks, with the approval of new equity issued to Drake & Scull’s biggest stakeholder Tabarak Investment, the company said.

Phase two will see Tabarak inject a capital increase of 500 million dirhams. Tabarak has also extended an interest free loan of up to 100 million dirhams to the group.

The group has a order backlog of 6.6 billion dirhams and expects to announce the latest project wins in the second half of the year, the company said.