Abu Dhabi: Abu Dhabi Ship Building (ADSB), the country's naval and commercial vessels supplier, yesterday reported a 20.7 per cent drop in full-year net profits to Dh90.6 million.
Earnings per share also fell by 22.2 per cent to 42 fils. The marine vessels contractor generated Dh1.13 billion in revenues, only slightly less than the full-year 2009 results. The fall in revenues was 2.67 per cent.
"Revenues have exceeded Dh1 billion for the second year in a row. Gross profit has been consistent, indicating no change in operations and product mix," the company said in a statement to the Abu Dhabi Securities Exchange.
"This comes as a result of significant progress on existing long-term projects. ADSB plans to continue investing in its facilities to support future growth," it added.
The stock was untraded after the announcement, and its share price remained at Dh3.62.
Low prices in the marine engineering industry last year brought pressure on companies when new business returned in the market after the economic slowdown during 2009.
ADSB recently completed the second 42-metre landing craft for the Royal Bahrain Naval Forces.
It is currently working on four 72-metre Corvettes for the UAE Navy after having delivered the second of these large vessels late last year.
The company has also delivered two 16-metre fast landing craft and two 42-metre landing craft for the Bahrain navy.
ADSB has also been winning government contracts from Oman and Qatar, apart from the Bahrain naval forces.
"Abu Dhabi Ship Building has experienced significant growth in business over the last three years, and the Kingdom of Bahrain's marine forces have been a major factor in this success," said Homaid Al Shemmari, the chairman of the company.
The company is owned 40 per cent by Abu Dhabi's investment arm, Mubadala, 10 per cent by the Abu Dhabi Government and 50 per cent by national shareholders.
- 90.6m: Dirhams, ADSB's 2010 full-year profits
- 20.7%: The drop in net profits over 2009
