NMDC achieves a record net profit growth of more than 74 percent reaching AED 403 million in the first half of 2022

18
  • The Group achieves revenues of AED 3,546 million in H1, increasing by 8.5 percent compared to the same period in 2021.
  • The Group’s total assets currently stand at AED 13.32 billion, up by 3 percent compared to the end of the first half of 2021.

Abu Dhabi, UAE: Underlined by its strategic expansion to international markets, diversification to new business verticals and progress in key projects, National Marine Dredging Company Group (ADX: NMDC), one of the world’s leading Engineering, Procurement, Construction (EPC) and marine dredging groups, achieved an exceptional net profit growth of 74.4 percent, reaching AED 403 million in the first half of 2022, compared to its net profit of AED 231 million during the same period in 2021.

Further cementing this success, the Group’s revenue increased by 8.5 percent to AED 3.546 million compared to its revenue of AED 3.269 million in the first half of 2021. The total assets of the Group are now at AED 13.32 billion, a growth of 3 percent over the total assets in 2021 at AED 12.92 billion.

The Group’s business continued to grow and expand during the first half of 2022, with significant progress made in major strategic projects such as the Hail and Ghasha field works with the Abu Dhabi National Oil Company, long-term agreements with Saudi Aramco, and the Etihad Rail project. NMDC’s ambitious expansion plans and strong global position have also increased the percentage of revenues generated from projects outside the country to 42 percent of total revenues in the first half of 2022.

Highlights from the first half of 2022

  • The launch of SAFEEN Surveys and Subsea Services in partnership with AD Ports Group
  • The Umm Shaif Field project from ADNOC for AED 3,474 million
  • Dredging works at the entrance to the navigation channel and the trench of the quay wall in Safaga Port in Egypt for AED 79 million
  • The Jafurah Development Programme and MNIF 14 Jacket projects from Saudi Aramco for AED 1,689 million and AED 782 million respectively
  • The Tharwa Town Reclamation Works from Ansab Contracting in the Kingdom of Saudi Arabia for AED 256 million
  • Charter of DLS-4200 vessel to Yunneng Wind Power Co. Ltd for AED 364 million
  • An agreement for the purchase of a cutter suction dredger for AED 425 million. The addition of this vessel to the Group’s fleet will enable it to take on more challenging, large-scale, and diverse projects in the coming years, making it more competitive in the dredging market.
  • The decision to allow foreigners to own 49% of the Group’s shares – effective last April

His Excellency Mohamed Thani Murshed Ghannam Alrumaithi, the Chairman, said: “We were able to maintain our outstanding results and growth rates in profits and revenues, which indicates the success of our strategic expansion, whether in terms of new business areas or geographical footprint, as well as efficient performance in implementing strategic projects in the UAE, Saudi Arabia, and Egypt, as part of our rapidly expanding diversified portfolio. We will continue to work to strengthen the Group’s regional and global positions, one of the fastest growing Engineering, Procurement, Construction (EPC) groups in the world, as part of our commitment to support the vision of the UAE and its wise leadership, so that the national industry remain present at the highest levels of competitiveness, and continue to be a vital component to the national economy, in order to achieve long-term and comprehensive development goals.”

Eng. Yasser Zaghloul, Group CEO, added: “We are eager to achieve strong and positive levels of growth and complete projects with the utmost efficiency and perfection, in order to solidify the Group’s leading position in Engineering, Procurement, Construction (EPC) and marine dredging. We are excited to continue our expansion strategy and enter new areas and markets, and that is why we are investing in enhancing the capabilities of our advanced marine fleet. The establishment of Safeen company is also a great example of our ongoing pursuit of partnerships that achieve business diversification and support our growth plans.”

The Group’s strategy focuses on enhancing cost optimization, supply chain management, resource use efficiency, and increased productivity across all levels.

NMDC has a number of upcoming projects in Southeast Asia, South Asia and Europe, which highlights the confidence of the industry and clients in the Group’s competencies. The Group’s operations are also in accordance with the highest health, safety, and environmental standards; NMDC is seeking to further strengthen its capabilities to support energy transition particularly as the UAE prepares to host the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in 2023.

The Group has transformed to become a specialist global marine and energy EPC company. Today, the strategic areas of operation that the Group focuses on include: Dredging & Marine Civil, covering dredging fleet, civil and port development; and Energy, covering downstream, onshore, renewable energy, energy transition and maintenance & turnaround, in addition to shared initiatives such as survey & subsea and decommissioning and heavy lift.

NMDC has also developed exceptional capabilities in energy EPC, for offshore and onshore construction and the maintenance of oil and gas facilities. It has expanded its marine contracting operations through aggressive expansion for the construction and maintenance of ports, waterways, and near-water structures. The Group is also strengthening its specialist marine services with offshore logistics and services as well as for testing the conditions for construction and maintenance.

About NMDC (The Group)

National Marine Dredging Company (The Group), the UAE’s leading contractor in the field of engineering, procurement, construction, and marine dredging in the Middle East spanning vital sectors, creating solutions that meet the challenges of the future in the energy EPC sector. Under its umbrella, the group owns and operates NMDC, NPCC, and EEMDC.

NMDC is a leading contractor in the field of dredging and marine civil construction, delivering a range of services including the construction of port infrastructure, land reclamation, coastal defense, and deepening and maintenance of waterways. NMDC owns and operates a modern fleet of dredgers supported by a wide range of auxiliary equipment including tugs, workboats, barges, and survey vessels.