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Abu Dhabi’s National Marine Dredging Company (NMDC) is an EPC contractor serving onshore and offshore clients in the oil and gas industry.
On its 1.3 million square meter site, NMDC provides a range of services such as pipe coating, indoor and outdoor material storage, pressure vessel construction and petroleum product storage tank fabrication. NMDC is also engaged in dredging and reclamation works in the territorial waters of the UAE. It also operates in Bahrain, Egypt, Saudi Arabia and India through its subsidiaries.
The market capitalization is AED 18.23 billion.
Financial Performance
In 2022, NMDC reported a 35% increase in revenue to AED10.68 billion, while net profit soared 30% to AED1.3 billion, of which AED237 million was attributable to the sale of part of the subsidiary’s business. As a result, EPS rose 25.39% to Dh1.58.
The balance of cash and cash equivalents increased from AED 802 million to AED 2.78 billion in 2022. NMDC held retained earnings reserves totaling AED4.95 billion at the end of December.
new contract
NMDC has secured several contracts for 2022 totaling over AED 9.6 billion. These include ADNOC’s AED3.4 billion deal for Umm Sharif Field, and Saudi Aramco’s AED2.4 billion contract for two key projects – the Jafurah Development Program and MNIF’s 14 Jacket Project.
Another deal by ADNOC involves AED2 billion for a major gas pipeline project at its Lower Zakum gas field. NMDC has also signed two dredging contracts in Egypt – one for the Suez Canal worth AED 1 billion and the other for the port of Safaga worth AED 79 million.
Another project involves the installation of monopiles for wind turbine structures at the Yunlin Offshore Wind Farm as part of a deal worth AED364 million. It has also won a Dh256 million dredging and reclamation project from Saudi Arabia’s Ansab Contracting.
Such a robust project pipeline improves revenue visibility and growth prospects. It enables NMDC to successfully achieve its goal of geographical expansion, diversification into new business verticals, and gain greater market share both within and outside the UAE.
growth opportunity
NMDC is implementing projects worth more than AED54 billion. Looking ahead, the company is committed to enhancing its state-of-the-art fleet and adopting innovative technologies to win more contracts and expand its ability to undertake specialized projects of a more complex nature.
The acquisition of National Petroleum Construction Company (NPCC) in February 2021 also unlocked synergies.
In March 2023, NMDC signed a Memorandum of Understanding with the Abu Dhabi Chamber of Commerce and Industry to launch an initiative to increase procurement opportunities. This will also support the progress and development of Abu Dhabi businesses by facilitating participation in the NMDC Group’s portfolio of projects.