Dubai Contractor Drake & Scull Appoints New Chief Executive Amid Expansion Plans!
Appointment comes after completion of debt restructuring deal with creditors
Dubai-based contractor Drake & Scull International has named Muin Al Saleh as its new chief executive. The company plans to grow its operations after finishing a debt restructuring deal with its creditors this year.
Mr. Al Saleh, who has worked in top roles at engineering and construction companies in the Middle East and other countries, will start his new job right away. Drake & Scull announced this on Thursday in a report to the Dubai Financial Market, where its shares are traded.
“His appointment aims to reinforce the company’s commitment to revitalizing operations, focusing on operational efficiency, controlling costs, delivering current projects, winning new projects, and driving productivity and growth," the company said.
This news comes after Drake & Scull canceled Dh4.18 billion ($1.1 billion) in financial and business debts. The company also began settling with other creditors after meeting the requirements of its restructuring process this year.
As part of the settlement, the company has issued sukuk (Islamic bonds) to creditors who owe Dh1 million or more. These bonds can be changed into shares five years after they are issued.
For creditors who owe less than Dh1 million, the company has agreed to pay them in cash. A total of Dh13.6 million will be paid, according to the final list of creditors published on January 30.
Drake & Scull provides general contracting and engineering services. It works on projects in the oil and gas, and water treatment sectors. The company has been in the region since 1966 when it first opened in Abu Dhabi.
However, the company faced difficulties during the three-year drop in oil prices starting in 2014. This drop hurt the property and construction sectors in the area.
During the tough financial times that followed, many construction companies in the region had to lay off tens of thousands of workers because payments stopped.
Drake & Scull’s shares were stopped from being traded in November 2018 after the company reported large financial losses.
Trading of the shares started again on the Dubai Financial Market in May this year. This happened after the company increased its share capital by Dh300 million and the Dubai Courts approved its restructuring plan, which canceled 90 percent of its debt.
Drake & Scull turned a profit in the third quarter of this year thanks to higher revenue. The total profit for the three months ending in September was Dh5.9 million, compared to a loss of about Dh35 million in the same period last year.
Revenue increased by 13 percent to Dh21.5 million during this time.
