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Abu Dhabi Ship Building reports sparkling 2017 results

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Abu Dhabi Ship Building PJSC (ADSB) has reported net profit up by 70% to AED104.8m ($28.5m) for the 2017 financial year ending in December, representing its second-best performance ever. Gross profit for the year rose from AED256.1m ($69.7m) in 2016 to AED 277.1m ($75.4m).

The latest financials demonstrate the yard’s continuing success story as the company diversifies its traditional naval construction and repair business into new sectors including commercial shipping and offshore. The figures are notable, however, because the shipbuilding and repair sectors are under pressure as a result of the offshore downturn and the expansion of shipyard capacity across the region.

Under the leadership of Dr Al Mazrouei, the results were driven by cost efficiencies in new construction, expansion in the oil and gas sector, and the increased scope of the three-year Marine Support Services contract with the UAE Navy which runs until 2020.

A key element in the ADSB diversification strategy has been the acquisition of a floating dock and an adjacent repair quay with back-up facilities in Mina Zayed, about 35kms from the company’s main site at Mussafah. The dock, with a lifting capacity of 10,000 tonnes, and the quay with a water depth of 14m alongside, do not have the same size constraints as the main shipyard and are therefore capable of repairing larger ships.

ADSB is a public joint stock company owned by the Abu Dhabi Government (10%), the Mubadala Investment Company (40%), with the balance of shares trade publicly on the Abu Dhabi Securities Exchange.