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National Marine Dredging Group achieves 30% growth

Demonstrating the success of its geographic expansion strategy and ability to enter new business verticals, National Marine Dredging Group (ADX: NMDC), one of the world’s leading Engineering, Procurement, Construction (EPC) and marine dredging groups, announced achieving a growth in its net profit by 30% during 2022 to reach AED 1.3 billion, compared to net profit of AED 1 billion reported for the year 2021.

In addition, the Group increased its revenues by 35% to AED 10.7 billion by the end of 2022, up from AED 7.9 billion in the previous year. The Group’s total assets increased by 24% and reached to AED 16 billion

The Group was also able to strengthen its position locally and regionally, with contracts worth more than AED 9.6 billion secured in the year 2022, and it expects to maintain its growth trajectory in 2023, in light of positive economic indicators.

Highlights from the full year of 2022  

  • Securing the Umm Shaif Field contract from ADNOC valued at AED 3,474 million. 
  • Securing projects from Saudi Aramco totaling AED 2,471 million including Jafurah Development Programme and MNIF 14 Jacket projects for AED 1,689 million and AED 782 million respectively.
  • Securing the Lower Zakum Field contract for building a New Main Gas Line project (NMGL) from ADNOC for AED 2,000 million. 
  • Securing a contract for the Suez Canal dredging works in Egypt for AED 1,000 million.
  • Securing a contract worth AED 364 million to install the monopiles for wind turbine structures in the Yunlin offshore wind farm.
  • Securing a dredging and reclamation contract worth AED 256 million from Ansab Contracting in the Kingdom of Saudi Arabia.
  • Winning a project for the dredging works at the entrance to the navigation channel and the trench of the quay wall in Safaga Port in Egypt worth AED 79 million.In January 2023, the Group has been awarded from ADNOC, the pre-construction service agreement (PCSA) related to the Offshore Facilities of the Hail and Ghasha Gas Development project for approximately AED 220 million.
  • The Group laid the foundation stone for a new 400,000 square meter manufacturing yard at Ras Al Khair Port in the Eastern Province of Saudi Arabia.

Quarterly results

During the last quarter of 2022, the Group achieved outstanding results, as net profits jumped by 20% compared to the same period in 2021 to reach AED 601 million, while revenues increased by 84%, to AED 4.6 billion.

Commenting on the results, H.E. Mohammed Thani Murshid Ghannam Al-Rumaithi, Chairman, NMDC Group, said, “2022 witnessed exceptional and distinct revenue and net profit growth, as the Group won unique and specialized contracts worth more than AED 9.6 billion, reflecting the success of our plans to achieve geographical expansion and diversify into new business verticals as well as capture additional market share in the UAE and beyond. As we look to the future, we expect to maintain healthy growth levels, execute projects with the highest levels of efficiency and competence, actively participate in advancing economy-shaping infrastructure, and enhance our capabilities in supporting energy transition plans, especially with the UAE declaring 2023 the ‘Year of Sustainability’ and the country gearing up to host COP28.”

Eng. Yasser Zaghloul, CEO, NMDC Group, said, “At the outset of the year, the Group developed a clear and ambitious plan to achieve additional growth and realize the maximum planned return on investment, as well as solidify its leading position in the engineering, procurement, construction, and marine dredging industries. This success demonstrates our strategic partners’ confidence in our ability to execute a diverse range of specialized and complicated projects in line with the long-term strategic goals of the UAE and those of the countries where we operate. During 2023, we will continue to increase the Group’s contribution to the nation’s GDP in line with ‘Operation300bn’ to stimulate the UAE’s industrial sector, while also focusing on enhancing cost optimization, supply chain management, resource use efficiency, and increased productivity across all levels.”

He added, “We currently have more than AED 54 billion worth of projects under execution, and we look forward to doubling this value, in line with the continuous enhancement of our world-class fleet and the adoption of the latest technology solutions the industry has to offer. Moreover, the acquisition of NPCC and unifying our operations into one strong group has given us a competitive edge to leverage existing opportunities, win more contracts and grow our capacity and capabilities to execute larger and more complex projects.

NMDC had completed its business consolidation deal with NPCC in February 2021, to enhance project execution capabilities, including the entire value chain to support future expansion plans.

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. 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. 

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