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Dubai-based contractor Drake & Scull International (DSI) said on Monday it swung to a Q2 2024 net profit, attributable to shareholders, of 3.82 billion dirhams ($1.04 billion) following the completion of a financial restructuring plan.
The mechanical, electrical and plumbing (MEP) contractor posted a net loss of AED 43.40 million in the year-ago period, according to LSEG data.
In Q2 2024, excluding the profit from the write back of liabilities under approved restructuring settlement plan of AED 3.76 billion, DSI "was able to achieve a semi-annual net profit of AED 30 million", it said in a DFM statement.
Write-off of debts, legal provisions and bank interest amounted to AED 4.1 billion.
The company, which has sustained years of losses due to project cancellations and huge debt servicing costs, said in a clarification disclosure that accumulated losses amounted to AED 1.68 billion, or 58% of paid-up capital as of June-end.
In March, the beleaguered company said it had completed a financial restructuring plan after reaching settlements with multiple lenders.
Revenue grew by 13% compared to the same period last year, the troubled company said.
(Writing by Brinda Darasha; editing by Imogen Lillywhite)