Drake & Scull International shares fall sharply in Dubai as it reviews business activities
Shares in Drake & Scull International (DSI) opened sharply lower on Tuesday morning, after the construction firm said it was reviewing business activities and seeking strategic investors after slipping into the red during the second quarter.
DSI shares opened more than 2 per cent lower, after Reuters reported that the company has appointed lawyers to hold discussions with the Securities and Commodities Authority, the UAE stock market regulator, on the possibility of bringing in strategic investors.
The construction firm has been hard hit by the economic slowdown across the Arabian Gulf in the wake of lower oil prices, particularly in its core market of Saudi Arabia.
DSI earlier announced a second quarter loss of Dh207.6 million, compared to a profit of Dh10.3m for the same period last year.
Chief financial officer Kailash Sadangi told Reuters that the company had made a decision to withdraw gradually from its civil engineering business in Saudi Arabia, and had discussed with advisers the possibility of a further business review in recent weeks.
DSI’s shares have fallen about 13 per cent during the past two weeks.
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