Drake & Scull ends Saudi work drought with Dhahran wastewater plant

Updated 02 August 2017

Drake & Scull ends Saudi work drought with Dhahran wastewater plant

LONDON: Drake & Scull International (DSI) has ended a near three-year major order drought in Saudi Arabia.
The Dubai-listed contractor was chosen to help build a wastewater plant that will also generate biogas.
The contractor which was hit hard by the construction slowdown in the country, won a SR268 million ($71.5 million) order to build the South Dhahran Wastewater Treatment Plant in Eastern Province.
It is part of a consortium that includes Germany’s Passavant Energy & Environment and Aziz Company for Contracting and Industrial Development, a Saudi contractor, DSI said in a bourse filing.
Drake & Scull CEO, Wael Allan, who was appointed last October to help turn the contractor around, described the order as a “significant win.”
When complete, the plant which is located in Al Khobar, will treat 70,000 cubic meters of water per day.
The three-year contract was awarded by the National Water Company. It will be one of only a few in the country that also harness bio-gas to generate electricity.
The contract comes at a crucial time for the contractor as it embarks on a turnaround strategy that includes a move to extinguish its accumulated losses through a capital reduction program.
The last major Saudi contract award listed on the contractor’s website was for a hospital in Riyadh announced in September 2014.
Drake & Scull picked up contracts worth more than SR1 billion that year in Saudi Arabia, but it was quickly hit by escalating labor costs and later by the fallout from the weakening oil price which slowed spending across the construction sector.
But a recent recovery in the industry represents a positive development for Drake & Scull as the contractor looks to reduce its debt pile and cut overheads.
Saudi Arabia was considered to be the second-best market in the region in terms of potential opportunities thanks to its “scale and long-term growth prospects,” according to the latest Risk/Reward Index published by BMI Research.


Saudi Aramco appoints Mark Weinberger to Board of Directors

Updated 53 min 24 sec ago

Saudi Aramco appoints Mark Weinberger to Board of Directors

  • Weinberger, who replaces Andrew Gould, also serves as a director on the boards of Johnson & Johnson and Metlife
  • Weinberger was an active member of the US government, having worked across different administrations

DUBAI: Oil giant Saudi Aramco has appointed the former chairman of global firm EY (previously known as Ernst & Young) Mark Weinberger as an independent member to its board of directors, the company said in a statement.

Weinberger, who replaces Andrew Gould, also serves as a director on the boards of Johnson & Johnson and Metlife.

He is a member of several boards of trustees, including the United States Council for International Business (USCIB).

“I am honored to be joining the board of Aramco at this important time in the company’s history and world events,” Weinberger said.

Weinberger was an active member of the US government, having worked across different administrations – from George W. Bush to Donald Trump.