DSI fires CEO, CFO as losses triple

Dubai

Drake and Scull International (DSI), the Dubai-listed contractor, said on Thursday it has fired its chief executive officer, chief financial officer, and chief legal officer as its losses more than tripled.

In a statement to the Dubai bourse, DSI said it has approved a decision to terminate the services of CEO Tawfiq Abu Soud, who was only appointed for the position in late January 2019. He succeeded Yousuf Al Mulla, who resigned from the position in late December 2018.

DSI said that an executive committee will manage the day-to-day operations of the company, with the committee consisting of three managers will a new CEO and CFO are appointed.

The company reported on Thursday Dh5.09 billion in losses in 2018, compared to Dh1.4 billion in losses a year earlier, with revenues shrinking by a third. Revenues for the full-year reached Dh798 million, down from the Dh2.6 billion in 2017.

DSI’s asset value has also shrunk, falling to Dh1.9 billion in 2018 from Dh6.9 billion a year earlier.

DSI’s disclosure of its results comes about three months after most listed companies disclosed their 2018 earnings, with firms now starting to post their results for the first quarter of 2019.

Trading on the company’s shares has been suspended on the Dubai Financial Market since November 2018 as it attempts to approve a restructuring plan.

It did not provide a press release or a full management report to explain its outlook or where the losses stemmed from, but the board of directors said in the financial report that the increase in losses is mainly due to provisions it had to take and payments it has not received.

“Looking ahead, our main focus will be to restructure our debt and equity for which a comprehensive plan is in progress,” the board said.