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Maintaining its upward trajectory and achieving record results

NMDC Group doubles first half net profit to 881 million dirhams

26 Jul 2023

H.E. Mohamed Thani Murshed Al Rumaithi:

  • The results reflect our competitive strength and ability to achieve growth in challenging times.
  • Strong revenue growth reflects our customers' confidence in our successful execution of major projects.
  • Results are a product of a clear, ambitious, and innovative strategy, constructive ideas, and careful planning, leaving no room for chance.

Eng. Yasser Zaghloul:

  • Profits are a result of clear policies, ambitious goals, and a successful work system.
  • We are committed to providing innovative maritime construction solutions to meet our customers' needs.
  • First-half successes reinforce our position as one of the world's leading companies.
  • What we have achieved solidifies the Group’s position in shaping the future of the global maritime construction industry.

Additional suggested headlines for the press release:

  • Strong performance and continuous progress in various major projects reflected in first half numbers and achievements
  • NMDC Group reports AED 881 million net profit in the first half of 2023
  • The Group’s geographic revenue distribution: 79% in the UAE and 21% from international markets
  • AED 596 million worth of installation projects for "ADNOC"
  • "Let’s Grow Together": A NMDC Group and Abu Dhabi Chamber of Commerce and Industry initiative that aims to enhance market awareness among suppliers

Abu Dhabi, United Arab Emirates, 26 July 2023: National Marine Dredging Group (ADX: NMDC), one of the world’s leading Engineering, Procurement, Construction (EPC) and marine dredging groups," has announced a significant surge in its net profit during the first half of 2023, reaching AED 881 million. This remarkable achievement reflects the success of the Group’s geographic expansion strategy and the successful execution of major projects. The first half year results demonstrate record-breaking numbers and substantial growth in both revenue and net profit, with the Group’s revenue reaching AED 6.765 billion, compared to AED 3.546 billion in the same period of the previous year, an increase of AED 3.219 billion.

The numbers and achievements reflect strong performance and continuous progress in various major projects, such as the Northern Development Project, Hail and Ghasha in the United Arab Emirates, in addition to long-term agreements with Aramco in the Kingdom of Saudi Arabia. Furthermore, the Group's net profit reached AED 881 million in the first half of 2023, a 119% increase of AED 478 million compared to the net profit in the first half of 2022, which stood at AED 403 million, further showcasing the growth of its operational efficiency. These positive results demonstrate the Group’s success in adhering to its strategy and achieving its financial goals while focusing on sustainable value creation for its shareholders.

Pursuit of Excellence

Commenting on the results, H.E. Mohammed Thani Murshid Ghannam Al-Rumaithi, Chairman, NMDC Group, said, "These results reflect our Group’s competitive strength and ability to achieve growth in challenging times. The strong revenue growth embodies the value we deliver to our customers and their confidence in our successful execution of major projects."

His Excellency affirmed that the Group’s success aligns with the pursuit of excellence in managing the economy of the UAE and Abu Dhabi, requiring boundless aspirations, scientific planning, determination for excellence and leadership, with development being a sustainable journey, and success necessitating further accomplishments.

He also added that the Group’s approach to work is derived from the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, the President of the UAE, "may God protect him," and the guidance of His Highness Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and President of the Executive Council of the Emirate of Abu Dhabi, further stressing the importance of supporting national talent, embodying the spirit of the era, emphasizing teamwork, and achieving sustainable development.

He added: "The Group continues to expand its geographic diversity, with 79% of its revenue coming from the UAE and 21% from international markets, notably Saudi Arabia and Egypt. These results follow a number of major achievements, including the Group's win of several new projects in the first half of the year." The Chairman further clarified, "We are committed to achieving exceptional success in all aspects of our work, and we are proud of the excellent results the Group has achieved in the first half of 2023, showcasing the strong performance that signifies the success of our strategy and the value we offer to our shareholders and stakeholders."

He added, "What has been accomplished is a major achievement, but one that is expected, as it stems from a clear and ambitious strategy, innovative and constructive ideas, unyielding will, and planning that leaves no room for chance. We provide all the components for work and success and pay attention to all the details no matter how small."

He noted that "with revenues reaching 6.765 billion dirhams, an increase of 3.219 billion dirhams over the same period of the previous year, we continue to strengthen our position as one of the leading companies in the marine dredging field. The record numbers we achieved in 2023 reflect our strong and increasing growth and indicate the robust performance of a number of major projects."

The Chairman added, "We also have a variety of upcoming new projects, including the Al Hudayriyat Island PDA project, which includes dredging, grading, and improving the soil ground. These projects reflect the Group’s dedication to providing high-quality services, its excellence in providing value to customers, and the immense trust it has earned from its past work, successes, and daily experience, its sound bet on the future, and the ability of national cadres to develop, compete, succeed, and excel.”

Established Policies

Eng. Yasser Zaghloul, Group CEO, said that the achievements and profits are a natural product of the Group’s clear and well established policies, the ambitious goals it seeks to achieve, as well as the success factors for an integrated work system to mobilize all energies, support talent, attract competencies, and face challenges with a flexible, innovative mentality, firm will, and unconventional solutions.

He added: "The first half of 2023 was full of positive events, where we made significant progress in a number of major projects, in addition to winning new contracts. We also saw strong growth in revenue and net profits, reflecting the strength of our strategy and our excellence in execution, follow-up, and continuous evaluation of the achieved results.”

He pointed out that based on what has been achieved, the Group is expected to deliver more achievements and added value to shareholders in the second half of the year. The CEO of the Group explained that what has been realized is the fruit of an integrated work system that takes planning and science as its approach, investing in human resources, and foreseeing the horizons of the future and the pursuit of excellence and leadership to keep pace with the successes achieved by the country in all fields, thanks to the guidance of His Highness Sheikh Mohammed bin Zayed Al Nahyan, the President of the UAE, "may God protect him," and the follow up of His Highness Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and President of the Executive Council of the Emirate of Abu Dhabi.

He added: "With the start of the second half of 2023, I would like to express my pride in the progress we have made so far. We are committed to providing innovative marine construction solutions and striving to meet our customers' needs.”

The Group's CEO affirmed that "the successes achieved in the first six months of the year enhance our Group’s position as one of the global leaders in the field of marine dredging. We are shaping the future of the marine construction industry in the world and are excited to start many new projects in the coming months."

"We look forward to the future with confidence and hope, and we strive with all ambition to continue our successes and meet the needs and expectations of our partners. We realize that excellence requires more innovation, work, organizing, and planning, and -God willing- this is our right bet, and the pledge we are committed to fulfill, for more profits, development, and sustainable growth." Eng. Zaghloul concluded.

Future Vision

NMDC Group’s record numbers have proved the accuracy of its future vision, asserted by the revenues, gross and net profits achieved during the first half of 2023.

The Group has consolidated its strategy aimed at expanding the scope of the its business by winning several new projects during the first half of the year, including the Hudayriyat Island PDA project from Modon Properties, in addition to a LOA from ADNOC in favor of the Group's subsidiary, the National Petroleum Construction Company (NPCC), related to pre-construction services agreement for marine facilities for the Hail and Ghasha gas development project worth about 220 million dirhams. The company also got the installation works for ADNOC with a total value of AED 596 million.

The Group also signed a memorandum of understanding with the Abu Dhabi Chamber of Commerce and Industry to launch an initiative aimed at qualifying suppliers and enhancing purchasing opportunities for suppliers in Abu Dhabi and participation of the Group's major projects in the country and the world. This resulted in the launch of the "Let’s Grow Together" initiative aimed at enhancing the awareness of suppliers with market needs, and introducing them to the standards that qualify them to participate in the Group's projects and expand the opportunity to participate in tenders.

NMDC Group also signed a memorandum of understanding with Modon Properties to support all its future projects as part of its commitment to continue delivering transformative projects that enhance the advantages of Abu Dhabi and support its economic growth and prosperity. In addition, the Group 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.

Ambitious Projects

The Group succeeded in investing AED290 million in ambitious projects during the period ending June 30, 2023, reflecting the company's solid commitment to achieving sustainable value for shareholders, which primarily includes dry docking, upgrading current dredgers, and supporting equipment, in addition to a piece of land worth 40 million dirhams. It is worth noting that the company offers numerous strategic projects and ensures its commitment to the highest standards of quality, efficiency, and sustainability, and continues to focus on developing and implementing its projects safely and effectively, which guarantees achieving real value for all shareholders. A total of 109,626,864 shares have been allocated to the Group as a cornerstone investor in ADNOC Logistics & Services.

Summary of Consolidated Financial Results

Q2 2023 Q2 2022 Variance H1 2023 H1 2022 Variance
(AED million)
3,556 1,994 +1,562 6,765 3,546 +3,219
Gross Profit
(AED million)
506 20 +486 829 130 +699
Net Profit
(AED million)
578 338 +240 881 403 +478
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