Drake and Scull International Makes a Profit in Early 2025 Due to Higher Income
The UAE-based contracting company Drake and Skull International made a profit in the first quarter of 2025, after losing a lot of money during the same time last year. This happened as the company continues to reorganize its business.
Drake and Scull’s First Quarter Update
Drake and Scull made a net profit of $668,119 (AED 2.45 million) in the first quarter of this year. This is a big improvement compared to the same time last year, when the company had a net loss of $11.5 million (AED 42.46 million), according to a statement on Monday.
Revenue from customer contracts slightly increased to $8.27 million (AED 30.37 million), up from $8.15 million (AED 29.96 million) last year.
Although general and administrative costs rose to $3.11 million (AED 11.44 million) from $2.35 million (AED 8.63 million) in Q1 2024, the company benefited from no new provisions and lower restructuring costs.
Other types of income also went up sharply. Other income rose to $2.83 million (AED 10.38 million) from $620,746 (AED 2.28 million), and finance income increased to $1.1 million (AED 4.05 million) from $41,655 (AED 153,000).
Earnings per share improved to $0.00027 (AED 0.001), compared to a loss of $0.0027 (AED 0.01) last year.
Accumulated Losses
In another update to the Dubai Financial Market (DFM), the company said it had total losses of $565.6 million (AED 2.07 billion) as of the end of March. These losses have been building up since the third quarter of 2015.
The main reasons for these losses include unfinished projects and unpaid bills in older projects in the GCC and India, as well as the full loss of value from goodwill and trademarks by the end of 2018.
Other reasons are poor performance on old projects, where actual costs were higher than planned, loss of money due to bonds, bank restrictions, and legal actions.
Drake and Scull said it is working to fix these issues by restructuring the business and improving its cash flow after raising new funds.
A restructuring plan was approved by the Dubai Court of Appeal in November 2023, and the company is continuing with this plan.
Published: 14th May 2025
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