Drake & Scull's AED 3.76B Turnaround Success
Drake & Scull International PJSC reports a remarkable financial turnaround with AED 3.76 billion profit in 2024.
Summary
Drake & Scull International PJSC has achieved a major financial turnaround in 2024, reporting a net profit of AED 3.76 billion, driven by successful restructuring and strategic initiatives.
Drake & Scull International PJSC (DSI), a leader in the contracting services sector in the UAE, has announced a remarkable financial turnaround for the fiscal year ending December 31, 2024. The company reported a net profit of AED 3.76 billion, a significant recovery from a net loss of AED 367 million in 2023. This turnaround is attributed to a comprehensive restructuring plan and strategic capital injections that have revitalized the company's financial health.
The restructuring plan, approved by the Dubai Court of Appeal, played a pivotal role in this recovery. The plan resulted in a liabilities write-back of AED 3.79 billion and the conversion of AED 368 million liabilities into Mandatory Convertible Sukuks. This strategic move has not only improved the company’s balance sheet but also bolstered investor confidence.
In addition to restructuring, DSI successfully raised AED 454 million through a share capital issuance, strengthening its liquidity position. This capital injection has enabled the company to pursue new project opportunities and secure contracts worth AED 1 billion within the UAE, reinforcing its market presence.
Operational efficiencies have been another cornerstone of DSI's success in 2024. The company implemented cost optimization strategies that led to a reduction in finance costs and enhanced profitability. With total assets increasing to AED 647 million from AED 315.4 million in 2023 and shareholder equity improving to AED 151.7 million, the company is on a solid financial footing.
Looking ahead, the future for DSI appears optimistic. The successful execution of its restructuring plan and strategic capital management have set a strong foundation for sustained growth. With its robust market presence and strategic project wins, DSI is well-positioned to capitalize on future opportunities in the MEP and oil and gas sectors.
Given the company's impressive turnaround and strategic initiatives, investors might consider a buy position on DSI shares. The company's enhanced financial health, coupled with its strategic project wins, suggest a promising outlook for future growth and profitability.
Source
Summary
Drake and Scull International PJSC (DSI), a company specializing in mechanical, electrical, and plumbing contracting services, as well as oil and gas, and water treatment projects, reported a significant financial turnaround for the year ending December 31, 2024. The company achieved a net profit of AED 3.76 billion, reversing a net loss of AED 367 million from the previous year. This improvement was attributed to a successful restructuring plan and capital injection. Key financial highlights include a 20% revenue increase to AED 103.7 million, gross profit growth to AED 5.3 million, and a rise in total assets to AED 647 million. Shareholder equity improved to AED 151.7 million, and earnings per share reached AED 1.685. Strategic achievements included a comprehensive restructuring plan approved by the Dubai Court of Appeal, a capital raise of AED 454 million, new project contracts worth AED 1 billion, and operational efficiencies that reduced finance costs.
