Abu Dhabi engineering group NMDC confirms Dh2b special dividend
NMDC Group confirms Oct. 31 as record date after strong 9-month results, subsidiary's IPO
Dubai: Abu Dhabi’s NMDC Group is treating shareholders to a special dividend of Dh2 billion (at Dh2.37 a share), with October 31 being the last entitlement date. Investors in the ADX listed entity will get their payments on November 25.
This comes after the engineering and marine services company recorded Dh2.19 billion in net profit for the first nine months of 2024, a substantial 45% rise over the year before. Revenues totaled Dh18.51 billion, with the NMDC Group benefiting from a steady stream of new contract awards, both in its home market and outside. (Net profit for the third quarter was Dh731 million, an increase by Dh99 million over 2023.)
There was also the successful floating of its subsidiary NMDC Energy on ADX. A well-received IPO, it was oversubscribed 31.3 times to reach Dh88 billion in August.
The project pipeline in the UAE’s energy and related sectors continues to run strong. By end September, its project backlog was at Dh70 billion plus.
Cash flow situation
The group raised its free cash flow in Q3-2024 by Dh1.4 billion, helped by ‘significant collection’. But when it comes to the nine-month comparison, the cash flow is negative, ‘largely due to higher working capital investment in the business, given the substantial growth during the period’.
“Our results highlight NMDC Group’s sustained momentum and ability to capitalize on market shifts, both regionally and globally," said Yasser Zaghloul, CEO of NMDC Group. "We are creating value not just for today, but for the future of the industries we serve. We will continue to branch out— vertically and horizontally—through diversification strategies aimed at maximizing added value and driving sustainable company growth.”