Posted on May 2, 2022
Foreigners can now own up to 49 percent of the Abu Dhabi Securities Exchange-listed National Marine Dredging Company (NMDC), according to a decision taken by the firm’s board of directors.
According to the firm’s LinkedIn page, the Government of Abu Dhabi owns 32 percent of the company; Abu Dhabi United Group for Development and Investment owns 20 percent; Al Khazna Insurance Co owns 7.11 percent; and the public shareholding is approximately 40.89 percent, currently.
Public shareholders consist of UAE citizens and foreigners, with a previous maximum threshold of 5 percent reserved for foreigners, prior to the recent announcement.
Mohamed Thani Alrumaithi, the chairman of the National Marine Dredging Company, said: “The group is working to improve and expand its business in support of the wise leadership’s directives to achieve a leading global position for national companies in line with the long-term UAE Centennial 2071 vision aiming at achieving first-place positions globally in various sectors.”
The decision, effective Thursday April 28, 2022, was passed in the company’s general assembly meeting and allows non-Emirati investors to buy shares of the National Marine Dredging Company (NMDC), which is one of the world’s leading engineering, procurement, construction (EPC), and marine dredging groups.
The decision to allow ownership of 49 percent of the shares in the National Marine Dredging Company will result in increased trading on the company’s shares, increased liquidity, and international flows for the stock, raising its value in global trading indices such as the FTSE Russell and the MSCI.
Alrumaithi added: “The group includes five of the largest integrated companies in the fields of engineering, procurement, and construction in the oil and gas, and marine services in the Middle East and North Africa.
“The group’s strategic diversification will focus on building exceptional capabilities in the energy and marine business sectors during the next stage.”
The National Marine Dredging Company recently recorded robust net profit growth of 146 percent to $17.8 million (AED 65.4 million) during the first quarter of 2022, compared to the net profit of $7.24 million (AED 26.6 million) during the same period last year, reflecting the group’s success in growing its footprint to new geographies and diversifying to new business verticals.
The group CEO, Eng Yasser Zaghloul, said: “We will continue to work to consolidate the Group’s success that was reflected in its first quarter financial performance and the record profits achieved in 2021. The group has emerged as a global leader in the fields of EPC and marine dredging, adding more operational value to all its operations.”
The National Marine Dredging Company continued its plans for geographical 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.
The group’s new strategy is being driven by a focus on resource use efficiency, cost optimization, supply chain management and increased productivity across all levels.
Eng Zaghloul added: “We look forward to acquiring a number of upcoming projects in Southeast Asia, South Asia, and Europe, as well as strengthening our capabilities to support energy transformation and renewable energy plans, especially as the UAE prepares to host the United Nations Framework Convention on Climate Change (COP28) next year in Abu Dhabi.”
“The company is implementing the state’s strategy to build a sustainable economy, keep up with changing times, provide job opportunities, qualify national talent, and enhance and support economic growth through our projects aimed at improving economic infrastructure. The acquisitions that the company seeks to make aim to reduce risks, open new markets, and increase shareholder returns.”
The National Marine Dredging Company develops ports and works on civil projects, refining and petrochemical operations, onshore operations, renewable energy, deep sea, and other related projects.
It also operates a modern fleet in the fields of energy and marine dredging, consisting of a group of dredgers supported by additional equipment of tugs, work boats, barges, and survey ships.
By the end of 2021, the value of the Group’s current assets had increased by 75 percent to $3.5 billion (AED 12.9 billion), up from $1.9 billion (AED 7.3 billion) at the end of 2020.
The National Marine Dredging Company has expanded its marine contracting operations through the massive expansion of projects for the construction and maintenance of ports, canals, and near-water structures, as well as the enhancement of its specialised marine services through marine services and logistics operations, as well as testing construction and maintenance conditions.
