NMDC Group’s Revenue and Net profit Surge in H1-2024

National Marine Dredging Company (NMDC), which is listed on Abu Dhabi Securities Exchange (ADX), on Thursday reported a surge in both revenue and net profit as compared to the corresponding period last year.

Announcing its financial results for the first half of 2024 after holding its board meeting on Wednesday, NMDC Group said that these financial milestones underscored NMDC Group’s solid strategic performance, operational excellence, and successful expansion into new projects.

The Group also announced the launch of several strategic initiatives, highlighting the organization’s commitment to growth, expansion, and the integration of sustainability into all significant aspects of its operations.

Revenue

The revenue for the first six months of 2024 was around $3.30 billion, which was 79% higher than the corresponding period last year, driven by significant ongoing projects and new awards, including the Abu Dhabi Mangrove Channel Widening works project, undertaken for Jubail Island Investment Company, and the construction of Al Nouf Artificial Island and the Das Island reclamation project, both commissioned by state-owned Abu Dhabi National Oil Company (ADNOC).

As much as 81% revenue in H1-2024, compared with 79% in 2023, was generated from the UAE and the remaining 19% revenue in H1-20204, compared with 21%, came from from international markets such as Saudi Arabia, Egypt and India.

Gross Profit

The gross profit during the last six months y-o-y increased by 109%, primarily driven by dredging works performed of 187 cu m compared with 98 cu m for the corresponding period in 2023. Some 67% of total gross profit in the current period was contributed by NMDC D&M.

With the expansion in business operations, the Group also benefited from operating leverage driven by economies of scale. This contributed to an improvement in gross margin from 12% in H1 2023 to 14% in H1 2024.

Net Profit

The Group also achieved a 66% growth in net profit after tax, despite significant tax costs of $52.55 million in the current period compared with $0.14 million tax credit resulting from the introduction of corporate tax in the UAE.

The progress on several cost optimisation measures, coupled with a number of technological enhancements within its operations, ensured that net profit margins were largely stable in H1 of 2024, as compared with the corresponding period in 2023.

Total Assets

The non-current assets as at 30 June 2024 increased to $1.91 billion primarily due to investments of $172.34 million in capex (primarily in pipelines, barges, multi-cats, and development of a new yard in Saudi Arabia) and an investment of $54.45 million in an equity-accounted investee.

With respect to current assets, significant growth in operations during H1 of 2024 led to an increased level of current assets to support business growth.

Align with NMDC’s Vision

NMDC Group Chairman Mohamed Thani Murshed Al Rumaithi said that the exceptional results reflected the company’s alignment with its vision, showcasing their commitment to driving the UAE’s prosperity and upholding its esteemed position on the global stage.

“Our outstanding financial performance is a testament to our relentless pursuit of excellence and our strategic execution. By consistently exceeding our goals, we have strengthened our leadership in the industry. These accomplishments underscore our dedication to sustainable development and the cultivation of local talent, aligning closely with the broader objectives of the UAE’s economic agenda,” he added.