Main highlights were: i) 2Q was a tough quarter that saw AED192mn in booked project cancellations (mostly civil projects in Saudi Arabia), adjustments for cost overruns, rising working capital deficit, and increasing financing costs on rising working capital financing; ii) New management has a mandate to assess the operations and make sure that risk is eliminated before year-end. With continued difficulties in Saudi Arabia, the likelihood of further adjustments is high in 2H; iii) Strategic focus will continue to be non-civil projects, particularly in the UAE; iv) Management is in talks with banks to deleverage and reschedule working capital debt to be more aligned to project receivables; v) Cost reduction programme is continuing; vi) Plans in place to divest non-performing subsidiaries and to dispose of non-core assets; vii) Talks ongoing on the collection of KAPSARC variation order, progress to be communicated in a week’s time; and viii) Talks ongoing with a number of strategic partners for a possible injection of equity. (Company conference call, Mai Attia, Sara Boutros)   Drake & Scull International (DU): AED0.49 as of 22 August 2016, Rating: Sell, FV: AED0.34 per share, MCap: USD302 million, DSI UH / DSI.DU