Abu Dhabi Shipbuilding eyes growth in oil and gas
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.”