Abu Dhabi Ship Building lands Dh870m order

Two combat ships will be built for the UAE armed forces.

Abu Dhabi Ship Building (ADSB) has confirmed a Dh870 million deal to build two combat ships for the UAE armed forces.

The shipbuilder said the vessels would be “equipped with multi-tasking equipment and advanced communication devices” in a statement yesterday.

Reports of the order emerged last week, sending the Abu Dhabi-listed company’s stock soaring 15 per cent to its highest level in two years.

ADSB is 40 per cent owned by Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, with 10 per cent owned directly by the Abu Dhabi Government and the remainder of the shares traded on the market. The company was established in 1996 to conduct refits and repairs for the UAE Navy.

The company generated sales of Dh224.3m for the third quarter, a year-on-year decrease of 17 per cent. Profit for the quarter stood at Dh22.1m, a year-on-year increase of 148 per cent.

Earlier this year the company signed an initial agreement with the UK’s Babcock International Group to collaborate on projects for the UAE Navy and other clients throughout the region.