Tuesday 24 May 2022

National Marine Dredging nets record $272m profit for 2021

ABU DHABI, January 27, 2022

National Marine Dredging Company (NMDC) has established its global credentials as one of the leading engineering, procurement, construction (EPC) and marine dredging groups by achieving a record net profit of AED1 billion ($272 million) in 2021. 
This surpasses industry estimates and positions the group as one of the world’s most profitable and fastest-growing EPC majors. 
NMDC's robust financial performance, despite the continued impact of the pandemic and its variants, highlights the successful expansion of its geographic footprint and strengthen industry partnerships to evolve as the region’s leading integrated EPC services provider for the marine and energy sector. 
This is highlighted by the company’s exceptional track record of delivering 72 projects in 2021 in addition to winning 17 projects in the UAE and several international markets.
The Group’s strategic diversification will focus on building exceptional capabilities in offshore downstream, onshore upstream & downstream, dredging and land reclamation, marine civil works, superstructures of berths and quay walls, ports, bridges, dams, canals, and offshore logistics including heavy lift, subsea engineering, vessels, geophysical and marine surveying, and the whole array of maintenance and turnaround services. 
As the industry gains momentum following the pandemic, NMDC’s extraordinary growth will be powered by aggressive plans for geographic growth, securing unique and strategic projects, business diversification, as well as mergers and acquisitions that will strengthen its profitability and return on investment. 
According to NMDC, this strategy will be driven by a focus on cost optimization, supply chain management, resource use efficiency, and increased productivity across all levels. 
The group has significant ongoing contracts, valued at over AED40 billion across eight countries globally, including in the GCC, Middle east, Egypt, North Africa, India and Maldives. 
More projects are upcoming in Southeast Asia, South Asia and Europe, which highlight the confidence of the industry and clients in the Group’s competencies, adding to its reputation as a global EPC company, it stated. 
Highlighting the group as a global industry leader, NMDC’s net profit for FY2021 increased more than 8x compared to AED107 million in 2020. 
The total revenue (turnover) increased 78 percent to AED 7.889 billion compared to the full-year turnover of AED 4.424 billion in 2020. The total assets of the Group are now at AED 12.9 billion, a growth of 75 percent over the total assets in 2020 at AED7.4 billion. 
With a market capitalisation of around AED 11 billion, the Earnings Per Share (EPS) was AED 1.26 in 2021 compared to AED 0.19 in 2020.
In the October to December period, NMDC had achieved a net profit of AED501 million, 86 percent higher than in Q3 (July to September), and revenue of AED2.51 billion, a growth of 19 percent over Q3 revenue of AED 2.11 billion. 
The Group won 5 contracts in the last three months of the year, valued at AED 15.21 billion. 
According to NMDC, within a record time of just one year, the group had 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. 
On th solid resulst, Chairman Mohamed Thani Murshed Ghannam Alrumaithi said: "The strong financial results achieved by the Group is a clear demonstration of the success of our strategy to be a global leader in providing EPC services for the energy and marine sector."
"We have steadily enhanced our international footprint and the Group is today regarded as one of the leaders in our sector. We are driven by our strategy to grow returns through access to new markets and segments, and by generating new revenue streams. We will realise the full synergies that the Group has gained through the acquisition of NPCC, and deliver the highest standards of project management," he added.
Group CEO Engineer Yasser Zaghloul said: "Our impressive financial results in 2021 are a true testament to the Group’s strategic and consistent efforts in leading the market and the industry globally. We have demonstrated exceptional resilience to the challenging market environment, and we will continue to work to achieve our ambitious expansion plans regionally and internationally."
"Our results have exceeded market forecasts highlighting the success of our business model of expanding to markets across Mena, South Europe, Africa, Southeast Asia, India and other countries across South Asia," he added.-TradeArabia News Service


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