DUBAI Feb 14 Dubai construction firm Drake &
Scull reported a 2016 net loss of 786.9 million dirhams
($214.4 million) on Tuesday, narrowing from a loss of 938.8
million dirhams in the previous year.
Revenues shrank to 3.24 billion dirhams last year from 4.20
billion dirhams in 2015. The contractor's net loss for the
fourth quarter of 2016 amounted to 490 million dirhams, compared
to a profit of 14.7 million dirhams a year earlier.
Drake & Scull also said that as part of its turnaround and
capital restructuring plan, it was considering proposing a
rights issue of 500 million dirhams in equity to a strategic
investor, and that it had secured a binding offer from United
Arab Emirates-based Tabarak Investment.
Like other construction firms in the region, the company has
been hit hard by tough competition in the sector and an economic
slowdown caused by low oil prices.
(Reporting by Davide Barbuscia; Editing by Andrew Torchia)