The Abu Dhabi Shipbuilding (ADSB) said yesterday it was planning to create a joint venture focusing on providing naval support services in the region.
The company's board of directors said it approved documents related to the project but gave no details.
"The board of directors reviewed and endorsed the legal documents related to the formation of a joint venture company focused on providing naval support services and authorised the chairman to finalise the terms of this joint venture," ADSB said in a statement at the Abu Dhabi Securities Exchange, where it is listed.
"The board also reviewed and approved board committee charters, which have been updated to comply with corporate governance requirements."
ADSB was established in Musaffah industrial area just outside the capital in 1995 as a joint venture between the Abu Dhabi Government, Mubadala Development Company and other shareholders.
It has won several major contracts for the UAE defence forces since it was launched as one of the largest shipyards in the region. One of its most important contracts involved building six corvettes under a $750-million (Dh2,754m) deal awarded by the armed forces in 2004. Most of them have been completed and the last vessel is due for delivery this year.
ADSB is the only specialist naval shipbuilder in the Gulf and constructs vessels in steel, aluminium and composite materials. Other recent new building contracts include 64 metres and 42 metres steel naval landing craft, 34 metres composite patrol craft, 16 metres seakeeper composite fast landing craft and aluminium fast troop transport boats and fast supply vessels.
The company's profits tumbled by nearly 62 per cent in the first quarter of 2009 after netting record earnings through 2008 because of a surge in business.
ADSB said the plunge in net profits to Dh10m in the first quarter of 2009 from Dh26.74m in the first quarter of 2008 was a result of a sharp drop in the company's revenue to about Dh159.3m from Dh197.4m.
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