NMDC Group reports robust financial results for Q1 2025

01/05/2025 03:07 AST

NMDC Group on Wednesday reported that it achieved 22 per cent year-on-year increase in net profit for the first quarter, from Dh641 million in Q1 2024 to Dh784 million in Q1 2025.

Revenues climbed to Dh6.2 billion, up 16 per cent year-on-year from the corresponding period of 2024. Earnings per share rose 12 per cent to Dh0.87, and total assets stood at Dh32.7 billion at the end of March 2025. By the end of the quarter, NMDC Group's backlog stood at Dh75.4 billion, with a healthy pipeline of projects.

During Q1 2025, NMDC Group marked several strategic milestones, which included the inauguration of an advanced 400,000 sqm state-of-the-art yard fabrication yard in Ras Al Khair, Saudi Arabia. NMDC Group's subsidiary, NMDC Energy, was awarded an EPC contract by Taiwan Power Company (Taipower) for pipeline installation, shore approach works and dredging for the Tung-Hsiao Power Plant 2nd Stage Renewal Project.

NMDC Group continued to build on its expertise and offering, where it signed an agreement to establish a new company, NMDCCC, in partnership with Consolidated Contractors Operations (Cyprus) Limited, who are a leading diversified company carrying out engineering, procurement, construction, development and investment activities internationally. Headquartered in Abu Dhabi, NMDCCC will provide a world-class, full-spectrum EPC powerhouse with unmatched global capabilities, and will operate within the UAE, with branches in Dubai and outside the UAE.

Under the agreement, the new company, with an ownership structure of 50 per cent for each of the partners, will provide end-to-end EPC services, enhancing project delivery for major National Oil Companies (NOCs) with expertise in onshore oil and gas, marine construction, and integrated mega infrastructure development. NMDCCC's capabilities will span across the construction of refineries, plants, ports, bridges, roads and industrial zones. The new alliance with CCC aims to unlock greater potential for the Group by increasing its market share, tapping into new markets, successful execution of our growing backlog, mitigating the risk of uncertainty by securing execution capabilities and reducing turnaround time to better serve clients.

Mohamed Thani Murshed Ghannam Al Rumaithi, Chairman of the Board of Directors of NMDC Group, said: "The results demonstrate how ambitious we have been, both at home and abroad, as we have inaugurated new partnerships, projects, and facilities that have brought further depth to our business. Collectively, NMDC Group's market-leading diversified businesses have also come to reflect the forward-focused aspirations of the UAE and its people, and as we look optimistically ahead, we'll continue to apply our vast capabilities in ways that will drive sustainable growth and economic progress for the UAE and further afield."

Eng. Yasser Zaghloul, CEO of NMDC Group, stated: "The notable growth in our net proft is a key indicator of the strength of our business as well as our market-leading capabilities, particularly how these continue to resonate across the energy and marine landscape. What is more, our success is also defined by trust, where shareholders and partners continue to value our expertise. As we look ahead, we'll continue to strengthen our vital relationships with government, client, investor, partner, and supplier stakeholders into the remainder of 2025 and beyond."

International expansion
Oman: In line with the group's strategy that focuses on geographical diversification, NMDC Group has signed a contract for the construction of a marina project in the Sultanate of Oman, with a total value of Dh383 million. The project is expected to be completed within 15 months from the date of signing.

Taiwan: NMDC Energy was awarded an EPC contract by Taiwan Power Company (Taipower) for pipeline installation, shore approach works and dredging for the Tung-Hsiao Power Plant 2nd Stage Renewal Project. The $1.136 billion project involves the design, construction and installation of 111 kilometres of linear subsea pipeline at depths ranging from 10 metres to 55 metres, stretching between Taichung and Tung-Hsiao on Taiwan's west coast.

Saudi Arabia: NMDC inaugurated an advanced fabrication yard in Ras Al Khair, Saudi Arabia. The 400,000 sqm state-of-the-art yard, part of the Ras Al Khair Special Economic Zone, boasts a production capacity of 40,000 tonnes per year and will provide offshore facilities fabrication as well as onshore modularisation. NMDC Energy invested Dh200 million into its Ras Al Khair yard to provide productive, safe and environmentally sound facilities, and it will embed the latest technologies to deliver efficiencies and reduce environmental impact.

Khaleej Times