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NMDC's net profit grew 40% on success of expansion strategy

During the third quarter of 2022, the group secured contracts worth Dh2 billion raising the total value of contracts won during the current year to Dh9.267 billion

The net profit of the National Marine Dredging Company Group (NMDC) grew 40.3 per cent during the first nine months of 2022 to Dh703 million from Dh501 million during the same period in 2021 as the group successfully implemented its geographical expansion strategy.

The move is part of the group's strategy tp diversify into new business verticals, and completing additional projects in the UAE and abroad, all while continuing to win new projects across various industries.

During the third quarter of 2022, the group secured contracts worth Dh2 billion raising the total value of contracts won during the current year to Dh9.267 billion.

Further cementing this success, the group’s revenue increased by 12.9 per cent to Dh6.072 billion from January to the end of September 2022, compared to Dh5.380 billion in the same period last year.

In the third quarter of 2022, the group’s revenues increased by 19.6 per cent reaching Dh2.526 billion, while net profit increased by more than 11 per cent to reach Dh300 million.

The group’s total assets stand at Dh13.8 billion as the end of September 2022, representing a growth of seven per cent over the total assets at Dh12.9 billion at the end of December 2021.

The group's business continued to grow and expand during the first nine months 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.

“In line with our expansion strategy, we continue to maintain outstanding and healthy growth rates as well as launch new partnerships that will enhance our growing business portfolio in the UAE and around the world. The group’s financial performance further strengthens our reputation and leadership position regionally and globally and increases our partners' confidence in our ability to execute major marine dredging, engineering and construction projects in various sectors," Mohamed Thani Murshed Ghannam Alrumaithi, Chairman, NMDC, said.

"Our current and future projects vary in scope, whether by sector or geography, demonstrating our clear and ambitious vision to achieve more growth and higher investment returns," he said.

Yasser Zaghloul, Group CEO, added: “Our quarterly results reflect our full commitment to delivering projects to the highest international levels and operational efficiency standards. Today, the Group is in a strong financial standing, with solid profits and operational capabilities that enable new avenues of growth and prosperity, in terms of future contracts and partnerships that open new sectors and markets. We are committed to further developing our fleet, equipment, and technological capabilities as well as investing in young industrial talent, ensuring our long-term growth."

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

NMDC Group has a number of upcoming projects in Southeast Asia and South Asia, 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.

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. — Wam