NMDC records 146% growth in Q1 profit to Dh65.4m

Supplied photo
Supplied photo

The total assets of the group are now at Dh12.63 billion, a growth of 1.3 per cent over the total assets of Dh12.47 billion during the same period in 2021.



by

A Staff Reporter

Published: Wed 20 Apr 2022, 5:34 PM

Last updated: Wed 20 Apr 2022, 5:37 PM

The ADX-listed National Marine Dredging Company (NMDC) (The Group), one of the world’s leading engineering, procurement, construction (EPC) and marine dredging groups, recorded a robust growth of 146 per cent in net profit to Dh65.4 million during the first quarter of 2022 compared to the net profit of Dh 26.6 million during the same period last year.

Mohamed Thani Murshed Ghannam Alrumaithi, chairman of The Group, said: “The exceptional and continued growth in our net profit and revenue reflects the success of The Group in strengthening its geographic reach and its strategic diversification to new business verticals. We have underlined our credentials as one of the world’s fastest-growing EPC and marine dredging majors, and achieved strong profitability through the management’s focus on resource use optimisation and enhancing end-to-end operational efficiency. The Group’s success is a strong testament to our commitment to building a high-value organisation in the UAE that serves the world and adds to the vision of our leadership to strengthen domestic manufacturing and in-country value creation.”

The group’s focus on diversifying to new business verticals and growing its footprint to new geographies also resulted in a growth in revenue by 33 per cent to Dh1.5 billion, compared to the Q1 2021 revenue of Dh1.16 billion. The total assets of the group are now at Dh12.63 billion, a growth of 1.3 per cent over the total assets of Dh12.47 billion during the same period in 2021.

Yasser Zaghloul, Group CEO, added: “Following the record profits we achieved in 2021, we are continuing to build on our success, which is reflected in the strong financial performance during the first quarter of this year. We have demonstrated our resilience to the challenges following the pandemic and have emerged as a global EPC and marine dredging major, creating value across all our operations. Our strategic expansion to verticals such as civil and port development; downstream, onshore, renewable energy, energy transition as well as subsea and decommissioning, among others will continue to power our growth. We will continue to focus on streamlining our resources and empowering our talented team to deliver world-class projects.”

During the first quarter of 2022, NMDC continued its aggressive plans for geographic growth, securing unique and strategic projects, while focusing on business diversification, as well as mergers and acquisitions that strengthened its profitability and return on investment. NMDC’s strategy is being driven by a focus on cost optimization, supply chain management, resource use efficiency, and increased productivity across all levels.

“We continue to monitor the market situation closely, particularly in terms of exchange rate fluctuations, and we are looking to implement impactful strategies to address the fluctuating price of raw materials. In this, our strong fundamentals and flexible business model is our strength, enabling us to overcome challenges and mitigate their impact. We are also evaluating the economic trends in the markets in which we operate in, especially Egypt, and working relentlessly to strengthen our business model in line with the changes in the market dynamics. This commitment to be proactive and responsive to market trends underpins our strong financial results,” he added.

The Group has a number of projects that are upcoming in Southeast Asia, South Asia and Europe, which highlights the confidence of the industry in its competencies. The Group’s operations are also fully aligned with the highest standards of health, safety and environment, with further capabilities being built to drive renewable energy and energy transition plans, especially as the UAE prepares to host UNFCCC’s Conference of the Parties (COP28) in 2023.

— business@khaleejtimes.com


More news from Business
Taqa’s Q1 net income up 37% to Dh2b

Business

Taqa’s Q1 net income up 37% to Dh2b

Taqa, one of the largest listed integrated utilities in the region, saw its group revenues rise 20 per cent to Dh12.4 billion compared to the prior-year period, primarily due to higher commodity prices within the oil & gas segment.

Business4 days ago