The Abu Dhabi Shipbuilding (ADSB) said yesterday its net profits nearly quadrupled in 2008 to their highest level since it was created 14 years ago.
ADSB, one of the largest shipyards in the region, said net earnings leaped to Dh103.1 million in 2008 from around Dh26m in 2007. The surge was a result of a sharp growth in contracts as the company's net operating income shot up to Dh86.3m from Dh14.7m while total revenue nearly doubled to Dh842.2m from Dh448.2m.
Earnings per share soared to 53.5 fils from Dh13.5 fils while total assets grew to Dh1.71 billion from Dh1.37bn. At the end of 2008, the company's shareholders equity swelled to Dh280.7m from Dh151.7m.
"The company is pleased to announce 2008 financial results that exceed both the prior year performance as well as the targets that were set at the beginning of the year," ADSB said in a statement released at the Abu Dhabi Securities Exchange, where it is listed with nearly 60 other companies.
"Revenue, profits and earnings per share are all at the highest levels in the company's history thus far. This comes as a result of success in winning new projects as well as through better than anticipated performance on its existing projects. ADSB is also continuing to expand its technical capabilities and capacities to support further growth for the future."
ADSB has won several defence contracts for the UAE armed forces since it was set up in Musafah outside Abu Dhabi in 1995 as a joint venture between Abu Dhabi government, Mubadala Development Company and other shareholders.
One of the largest contracts involved building six corvettes under a $750m 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 builds vessels in steel, aluminum 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 Aluminum Fast Troop Transport Boats and Fast Supply Vessels.