National Marine Dredging Company (NMDC -Abu Dhabi) June 2020 annual meeting of shareholders and 2019 financial results

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Posted June 22, 2020

National Marine Dredging Company of Abu Dhabi (NMDC) held its annual shareholder meeting on Sunday, June 21 for the first time in a virtual format with no live attendees due to coronavirus.

Besides approving the company’s accounts and financial statements, and retaining Ernst & Young as auditor, shareholders approved the distribution of 25% of the Company’s share capital as cash dividends, or AED 62,500,000, for the financial year ended on 31 December 2019. (Approx US$17mm at 0.27 to one USD.)

According to the Company’s accounts:

The Group achieved revenue of AED 2.8 Billion for 2019, (approx US$750MM) which was 84% higher than 2018. The increase in revenue was largely due to contributions from large projects such as Hail and Ghasha and Khalifa Port.

Net profit for 2019 at AED 181 million was 50% higher than 2018 at AED 121 mm.

The Company further stated that it had invested almost AED500 mm (over US$125mm) in fixed assets during the year, most of which relate to investments in its dredging fleet, including a new Trailing Suction Hooper Dredger and a Backhoe Dredger under construction, scheduled to be delivered in the second quarter of 2020, and additional support craft.

Major Achievements

The Company noted that “In the first quarter of 2019, the Group was awarded the high-profile Hail and Ghasha Artificial Islands Construction Project by Abu Dhabi National Oil Company for the construction of 11 artificial islands, with a project value of AED 5.18 billion.

The Group continued the execution of work on multiple projects in the UAE, of which the most notable are Khalifa Port South Quay Development and Foreshore Works, Hail and Ghasha Artificial Islands Construction Project, Al Yasat Island development, Delma Port, and Jubail Island infrastructure works, in addition to ongoing development works at Al Sila and Mugharaq ports.

With regard to international projects, the main activity continues to be in Egypt with two main projects progressing called Ras Gargoub and Manzala Lake.“

NMDC finally noted:

“These achievements are of strategic importance to NMDC as they will give the Company an opportunity to grow into an EPC contractor.”