Abu Dhabi Ship­build­ing eyes growth in oil and gas

The National - News - - BUSINESS - JENNIFER GNANA

Naval ship­builder Abu Dhabi Ship­build­ing Com­pany (ADSB) has locked in Dh750 mil­lion in rev­enues for 2017, as it looks to ven­ture fur­ther into the oil and gas in­dus­try.

“By De­cem­ber 31 we would have fin­ished con­cluded projects that would bring in rev­enues of around Dh750m, in­clud­ing with in­ter­na­tional clients and cus­tomers. We have ex­pected rev­enue of Dh500m for 2018 from com­mer­cial, mil­i­tary, ship­build­ing and ser­vices projects,” said the ADSB chief ex­ec­u­tive Khaled Al Mazrouei.

“Next year, we ex­pect the com­pany to be prof­itable and we ex­pect growth in rev­enue of five to 10 per cent next year un­til 2025,” he said.

ADSB’s rev­enues stood at Dh928m in 2016, up from Dh791m in the pre­vi­ous year.

Mr Al Mazrouei was speak­ing at the un­veil­ing of the ship­builder’s new brand­ing strat­egy at the Abu Dhabi In­ter­na­tional Petroleum Ex­hi­bi­tion and Con­fer­ence (Adipec). He said the com­pany is look­ing to fur­ther ex­pand its oil and gas ser­vices port­fo­lio, in ad­di­tion to its cur­rent port­fo­lio of naval and com­mer­cial ship­build­ing op­er­a­tions.

The com­pany last year com­mis­sioned its first float­ing dock in Abu Dhabi’s Mina Zayed port, with the in­ten­tion of ser­vic­ing oil and gas ves­sels.

“The down­turn has pre­vented oil and gas com­pa­nies from build­ing new ships and due to the oil price down­turn they’re try­ing to max­imise util­i­sa­tion. This calls for greater main­te­nance of ships and that’s our area of ex­per­tise,” Mr Al Mazrouei said.

“One of the in­ten­tions of hav­ing a float­ing dock at Mina Zayed is to en­hance the ca­pa­bil­i­ties for hav­ing oil and gas ships and as well as chem­i­cal ships, which wasn’t the case at our ship­yard at Musaf­fah be­fore. We’re not go­ing to the oil and gas as a core busi­ness. We’re just tak­ing care of the ships and the ser­vices, as well as they have the off­shore rigs,” he added.

ADSB, which suf­fered a Dh90.6m loss in 2014, man­aged a turn­around last year with Dh71m in net profit.

The com­pany, listed in Abu Dhabi and which is 40 per cent owned by Mubadala In­vest­ment Com­pany and 10 per cent by the Abu Dhabi Gov­ern­ment, re­paired and ser­viced 285 ves­sels last year.

ADSB com­pleted six oil and gas projects from re­gional, na­tional and in­ter­na­tional com­pa­nies over the past year.

“We have al­ready ex­ported to many GCC coun­tries. We did some works for Kuwait Navy worth Dh260m. The last two ships have al­ready been de­liv­ered as per con­tract, “said Mr Al Mazrouei.

We also ex­ported to some other GCC coun­tries some war­ships. We have ex­ported to coun­tries in Africa and the sub­con­ti­nent. The ser­vices are not only for the UAE, but we’re look­ing glob­ally,” he said.

“[For the] last three to four months, the float­ing dock has been fully oc­cu­pied.”

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