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NMDC achieves record growth rates during the third quarter of 2023

NMDC Doubles Net Profits during the First Nine Months of 2023 to AED 1.513 billion

20 Oct 2023

Abu Dhabi: 20 October 2023: The National Marine Dredging Company (NMDC), one of the world’s leading organization in the fields of marine dredging, energy, and Engineering, Procurement and Construction (EPC) (ADX: NMDC), announced that it has achieved record growth rates in net profits during the third quarter of 2023, reaching AED 1.513 billion for the first nine months. This reflects the organization’s leading position in the local, regional and global markets, as well as its strategic role in implementing major vital projects, by enhancing its competitiveness and expanding its business both locally and globally.

NMDC’s financial results for the third quarter of 2023 show record growth rates in revenues and net profits. The company’s revenues for the first nine months stands at AED 11.039 billion, compared to AED 6.072 billion in the same period of 2022, an increase of AED 4.967 billion.

This growth in revenues and net profits reflects the strong performance and continued progress in many of the major projects implemented by NMDC.

In addition, the Group’s net profits grew by 115% to AED 1.513 billion in the first nine months of 2023, compared to AED 703 million in the same period of 2022, an increase of AED 810 million. This reflects NMDC’s advanced operational ability to deliver projects with high efficiency, as well as its success in and commitment to implementing ambitious strategies for achieving financial goals, with a focus on enhancing sustainable profits and value for shareholders.

Competitiveness and continued growth

His Excellency Mohamed Thani Murshed Ghannam Al Rumaithi, Chairman of NMDC, said, “During the third quarter of this year, the Group was able to achieve exceptional financial results, maintaining its growth momentum and commitment to achieving the highest standards of operational efficiency. Its approach is based on the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and the guidance of His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council, and their support for national talent, in order to enhance comprehensive and sustainable development.”

His Excellency added, “Our growth and expansion strategies focus on enhancing the value that we provide to shareholders and strategic partners. These record results and achievements, along with the many vital projects secured since the beginning of 2023, demonstrate our continued efforts to improve performance and provide high quality services, increasing the confidence of our customers and creating new opportunities for cooperation and partnership in project implementation.” He added, “The organization is committed to building on the growth achieved in revenues and net profits, and continuing geographical expansion in light of the revenues, of which 79% came from the UAE and 21% from the international market, mainly Saudi Arabia and Egypt. In the near future, we aim to strengthen our presence in the international market in line with our position as a global leader in the field of marine dredging.”

Ambitious goals and policies

Eng. Yasser Zaghloul, CEO of NMDC Group, said, “The continuous efforts to enhance revenues and net profits are among the key pillars of the Group. The growth in financial results comes as a result of implementing our ambitious strategies and goals, through which we aim to create a positive, sustainable, long-term impact, reflected in the operational outcomes of our projects. Our work environment provides all the necessary elements of empowerment and excellence, which contribute to improving performance, supporting our strategic growth goals and enhancing our competitiveness in global markets in order to offer added value to shareholders at the end of the year.”

Eng. Yasser Zaghloul stated, "These milestones and the outstanding growth seen in the Group’s financial results reflect our pioneering role in the marine construction and dredging sector, and our commitment to offering innovative marine construction solutions. This is how we meet our clients’ and partners' requirements and maintain our position as a key player in the industry.”

The NMDC Group CEO added, "For Q4 2023, we are looking forward to a new chapter of achievements as we lead several new projects that will bolster our successes and support our goals towards realizing more growth and progress. We will always earn the trust placed in us by keeping pace with the ongoing comprehensive and sustainable cultural renaissance in Abu Dhabi and the UAE overall. This renaissance would not have been possible without the guidance of HH Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE."

Future Vision

The financial results accomplished by NMDC in Q3 2023 indicate that all resources and capabilities have been leveraged to realize the Group's vision and future strategies towards scaling its business scope. This helped NMDC win several new projects, most prominently an LOA from ADNOC in favor of NMDC's National Petroleum Construction Company (NPCC). The LOA is related to a pre-construction services agreement for marine facilities within the Hail and Ghasha development project worth around AED 30 billion. NPCC has a 50% share in this contract.

NMDC Group also signed an MoU with the Abu Dhabi Chamber of Commerce and Industry to launch an initiative aimed at qualifying suppliers and enhancing procurement opportunities for suppliers in Abu Dhabi and engagement in NMDC's major projects across the UAE and the world.

In addition, NMDC participated in Egypt’s International Petroleum Exhibition and Conference, and the International Maritime Transport and Logistics Conference (Marlog), one of the largest international conferences in the region for companies operating in the maritime transport and logistics services sector in Alexandria, with the aim of enhancing its presence in the Egyptian market.

NMDC recently participated as a key sponsor in ADIPEC 2023, the largest global energy forum of its kind. During this global exhibition, NMDC showcased its pioneering efforts to support the maritime industry's sustainability and decarbonization efforts, while also signing many MoUs and LOAs.

Ambitious Projects

New projects awarded to NMDC by September 30 -the end of Q3 2023- include ADNOC Gas' sales gas pipeline network program, known as Estidama. It covers implementing engineering, procurement and construction for the pipeline and its associated facilities to allow for transporting sales gas from Habshan to customers in the Northern Emirates. This project is being completed in cooperation with CAT International LTD - Abu Dhabi.

ADNOC also awarded NMDC Group's NPCC a contract for the Hail and Ghasha development project, which will be implemented in cooperation with Italian energy services company Saipem. NMDC holds a 50% share in this contract.

NPCC, an NMDC Group subsidiary, is implementing a project to install seven jackets for ADNOC. It also received an LOA from ADNOC Gas for the Maximizing Ethane Recovery and Monetization (MERAM) project in partnership with Tecnicas Reunidas. The group holds a 50% share in this contract.

NPCC is also carrying out a project to replace 125 km of the 20" main oil line (MOL) from the Umm Lulu platform to Zirku Island, for ADNOC Offshore.

Notably, NMDC has completed many strategic projects in line with best-in-class standards of quality, efficiency, sustainability, and safety, thus ensuring real value for all shareholders.

Summary of Consolidated Financial Results

Three months ended on September 30, 2023 Three months ended on September 30, 2022 Variance Nine months ended on September 30, 2023 Nine months ended on September 30, 2022 Variance
(AED million)
4,274 2,526 +1,748 11,039 6,072 +4,967
Gross Profit
(AED million)
615 341 +274 1,444 130 +956
Net Profit
(AED million)
632 300 +332 1,513 403 +810
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