UAE-based engineering and construction contractor has announced that current Group CEO Dr Fadi Feghal will step down at the end of the month when he is replaced with former Square General Contracting and Transemirates Contracting Company executive Yousef Al Mulla.
The new Group CEO, who will officially started on the 26 August, earned his bachelor’s degree in civil engineering in the US and is a certified project director.
His appointment comes as the company followed up its narrow profit in Q1 with losses in the second quarter ensuring it earned a net loss of $49.82 million over H1 2018. In its financial statement, DSI said the losses were due to cost overruns in its non- performing subsidiaries in secondary markets including Oman and Jordan. The contractor added that it was also experiencing a rise in cost to finance its projects debt obligations in its secondary markets. However the UAE remains relatively stable.
It was also revealed that DSI is continuing to prepare its restructuring plan which will include the scaling down of operations in non-core businesses and non-performing business streams.
“The board of directors (BOD) further reviewed the strategic objectives of a new restructuring plan that is being prepared, which will constitute an evolution of the ongoing restructuring and recapitalization efforts that commenced in 2016 and continued throughout 2017 and 2018. The comprehensive plan will be drawn to address the Company and its global subsidiaries across its core and non-core geographies. The plan will be considerate of the rights of all stakeholders including financial institutions, suppliers and vendors, as well as current and past employees of the Company, to ensure business continuity of the Company as one of two UAE entities in the contracting sector listed in the local financial markets. The Company will obtain the necessary regulatory approvals and coordinate with the competent authorities to ensure the success of the plan and its timely execution.
“The BOD further assures shareholders that it is exerting all its efforts and will continue to do so to safeguard the best interests of all its shareholders and to ensure the seamless operation of the Company and its continuity and financial results and the reflection on the return on shareholders’ equity.”
Elsewhere, Gulf Business has also reported that the company has sent a letter to the Dubai Financial Market dismissing rumours that it plans to suspend trading with its share price declining by almost 80% in 2018.
“There has been several rumours circulating in forums and social media including the possibility of the company’s share being suspended from trading and may have resulted in the decline,” wrote DSI. “We hereby confirm that the company has no intention to make such a request to suspend the share and that most of teh information that is published in social media forums is incorrect or mere rumours.”