DSI changes CEO again as Q2 loss is reduced

Drake & Scull International appointed its second chief executive this year as the company, which narrowed its loss in the second quarter, presses on with the restructure of operations.

The Dubai-listed engineering and construction services company appointed Yousef Al Mulla as chief executive starting on August 26, replacing Fadi Feghali, DSI said yesterday in a statement to the Dubai Financial Market, where its shares are traded.

DSI reported a net loss attributable to shareholders of Dh181 million for the three months ending June 30 compared with a loss of Dh183m in the same period a year earlier, according to the regulatory filing with the bourse.

Contract revenue nearly halved to Dh350m in the second quarter from Dh660m a year earlier.

The company said the decline in profitability is mainly attributed to cost overruns recorded for non-performing subsidiaries in secondary markets, primarily in Oman, Qatar and Jordan. Higher finance costs also contributed to the quarterly loss.

DSI said its board of directors discussed a “detailed and comprehensive” plan that is being prepared as a continuation to the restructuring strategy of its business that was put in place in 2016-17. The company intends to scale down operations in non-core businesses and non-performing business streams in the next phase of its restructuring while increasing its focus on core markets and profitable business streams.

In a separate filing with the DFM, DSI said there were no plans for it to suspend its shares from trading and that the decline in the company’s share price is a reflection of market supply and demand.

In March, the company said it would appoint Mr Feghali as chief executive, a post that had been vacant since August last year. Mr Feghali assumed his role on April 1.

Mr Feghali, who previously managed the international business units of DSI, succeeded Wael Allan, whose tenure was ended in August last year amid a management shakeup. Mr Allan assumed the post in October of 2016 after long-standing chief Khaldoun Tabari stepped down.

DSI’s main business lines include engineering, construction, and oil and gas.