NMDC to allow foreigners to own 49% of its shares
Abu Dhabi contractor National Marine Dredging Company will allow foreign investors to own 49 per cent of its shares in an effort to diversify its shareholding base.
The group’s decision, effective from Thursday, will boost the company’s shares by improving liquidity and driving up international interest in its stock on indexes such as the FTSE Russell and MSCI, the company said on Thursday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
The move is part of a “positive” long-term plan to streamline its operations, it said.
“The group is working to improve and expand its business ... to achieve a leading global position for national companies in line with the long-term UAE Centennial 2071 vision [aimed] at achieving first-place positions globally in various sectors,” said Mohamed Alrumaithi, the company’s chairman.
“The group’s strategic diversification will focus on building exceptional capabilities in the energy and marine business sectors during the next stage.”
NMDC is an engineering, procurement, construction and marine dredging contractor active in the Mena region.
Its financial performance has been strong as the UAE’s economy continues to rebound from the Covid-19 pandemic. The company’s 2021 net profit was up more than ninefold at Dh1 billion ($272.3 million), with revenue surging by 78 per cent
NMDC’s net profit in the first quarter of this year also more than doubled to Dh65.3m. Revenue jumped by about a third, primarily driven by the Hail and Ghasha offshore fields in the UAE and long-term agreements with Saudi Aramco.
NMDC signed an agreement in January with the Dredging Corporation of India to expand its presence in the Indian subcontinent, the Gulf region and Africa.
The global dredging market is projected to reach a value of $15.7bn this year and grow at a compound annual rate of more than 3 per cent to $21.4bn by 2032, according to data from market research company Fact.MR.
The demand for energy infrastructure in application is expected to increase at a growth rate of close to 5 per cent over the 2022 to 2032 period, it said.