Abu Dhabi-based NMDC Group, specializing in engineering, procurement, construction, and marine dredging, has revealed its financial results for the nine-month period ending September 30, 2024. The company reported AED2.2 billion ($598.96 million), a remarkable 68 percent increase in revenues and a 45 percent rise in net profits compared to the same period last year.
Key drivers of growth
This strong performance for the nine months ending September 30, 2024, was driven by a robust project pipeline, strategic operational expansion across the Group’s divisions, and the successful Initial Public Offering (IPO) of NMDC Energy.
Revenue and profit highlights
For this period, NMDC Group’s revenues surged to AED18.518 billion, marking a 68 percent increase from AED11.039 billion in the same period of 2023. Net profits also experienced significant growth, climbing 45 percent from AED1.513 billion in 2023 to AED2.192 billion, reflecting a strong operational performance and strategic expansion into new ventures.
Third quarter performance
In the third quarter of 2024, the Group reported a net profit of AED731 million, representing a 16 percent increase compared to the same quarter in 2023. Revenues for Q3 2024 reached AED6.392 billion, up 50 percent from the previous year.
Strategic initiatives
Mohamed Thani Murshed Ghannam Al Rumaithi, chairman of NMDC Group’s Board of Directors, highlighted the company’s crucial role in supporting dynamic sectors across the UAE, noting that the impressive financial results reflect both the strength of the business and the overall health of the UAE economy. He emphasized the significance of strategic initiatives, including the successful listing of NMDC Energy, which demonstrates the company’s readiness to unlock new opportunities.
Market adaptability
Yasser Zaghloul, CEO of NMDC Group, emphasized the company’s ongoing momentum and adaptability to market changes, both regionally and globally. He pointed out that by leveraging integrated capabilities and strategic insights, NMDC Group aims to create long-term value for the industries it serves. He also mentioned the company’s commitment to expanding through diversification strategies.
Commitment to future growth
The CEO further expressed the company’s dedication to refining financial metrics, driving operational excellence, and expanding strategic investments to maintain NMDC Group’s leadership in a rapidly changing environment.
Successful IPO launch
Earlier this month, NMDC officially commenced trading on the Abu Dhabi Securities Exchange (ADX) following a highly successful IPO that was oversubscribed by 31.3 times.
Offering details
The offering consisted of 1.15 billion shares in NMDC Energy, representing 23 percent of the total share capital, priced at AED2.8 per share for eligible investors. Furthermore, final allocations included approximately 0.17 percent for retail investors and 6 percent for professional investors, as reported by WAM.
Advisory and support structure
International Securities LLC acted as the placement agent and listing advisor, while First Abu Dhabi Bank PJSC served as the lead receiving bank and lead manager for the IPO. Other receiving banks included Abu Dhabi Commercial Bank PJSC, WIO Bank PJSC, and Al Maryah Community Bank LLC, with legal counsel provided by Hadef and Partners.
Regulatory approvals
In August 2024, NMDC Group received approval from the Securities and Commodities Authority and ADX to proceed with the IPO of a portion of its NMDC Energy shares.
Investment opportunities
Supported by Alpha Dhabi Holding, NMDC Group has a strong track record of delivering major projects with innovative and cost-effective solutions. The NMDC Energy IPO represents an attractive opportunity for investors to engage with the company’s promising growth trajectory.
Read more: Abu Dhabi’s NMDC Energy starts trading on ADX following 31.3 times IPO oversubscription
Contribution to UAE’s vision
NMDC Group plays a key role in advancing the UAE’s vision of a modern and progressive landscape while boosting the local economy. The group’s extensive expertise enhances infrastructure across the region, with a strong commitment to sustainability and environmental stewardship.
NMDC Energy overview
NMDC Energy, a subsidiary of NMDC Group, offers integrated solutions in the energy sector, including engineering, procurement, and construction services. The company operates state-of-the-art manufacturing facilities in Abu Dhabi, spanning 1.3 million square meters.
Project portfolio and backlog
As of June 30, 2024, NMDC Energy’s backlog was valued at approximately AED54 billion, covering diverse sectors and regions. The company has successfully completed over 1,200 strategic projects, including the construction of more than 1,360 facilities. Its portfolio also includes the installation of approximately 8,000 kilometers of onshore and offshore pipelines and 2,000 kilometers of submarine cables.
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