Abu Dhabi Ship Building secures Dh3.5bn contract to build patrol vessels for UAE Navy
The deal to build four offshore patrol vessels is the biggest order ever secured by the company
Abu Dhabi Ship Building, which is part of defence conglomerate Edge, secured a Dh3.5 billion ($950 million) contract to build new patrol vessels for the UAE Navy.
The contract is the biggest order ever received by ADSB and covers the building of four Falaj-3 Offshore Patrol Vessels. The company did not give a timeline for delivery.
“This order represents a resounding vote of confidence in ADSB from the MOD (Ministry of Defence) and the UAE Navy,” Khalid Al Breiki, chairman of ADSB and president of mission support at Edge, said.
“The contract will provide the company with a platform for sustainable profitable growth, while maintaining strategic national assets that are critical to the defence of the UAE.”
ADSB, listed on the Abu Dhabi Securities Exchange, manufactures corvettes, offshore patrol vessels and fast patrol boats. It also offers a full range of maintenance, repair and refit, upgrade and conversion of vessels.
“This contract underscores our mutual commitment to serving the UAE navy with the right products and advanced shipping solutions – to enable a secure future,” David Massey, chief executive of ADSB, said. “We look forward to expanding and enhancing our portfolio of vessels.”
The company is also looking to export its vessels to different markets to boost its revenue, Mr Massey told The National in an interview at the Idex and Navdex exhibition earlier this year. It will target markets bordering the Indian Ocean to sell its vessels.
“ADSB has only exported to GCC countries till now and we are going beyond GCC to East Africa, North Africa and the Indian Ocean,” Mr Massey said at the time.
ADSB is one of 25 entities that make up Edge – a defence conglomerate formed in 2019 that specialises in developing advanced technology for weapons systems, cyber protection and electronic warfare.
Last week, the company declared a net loss of Dh15.7m in the three months to March 31 on revenue of Dh56.9m, which it said was due to one-off costs associated with the biennial Navdex exhibition and rental payments on a floating dock. However, since the quarter ended, the dock was sold for Dh34.5m, on which the company stands to make a Dh17.5m gain.
"The disposal will save a significant sum in rental payments and contribute to an improved financial performance in the remainder of 2021 and onwards," ADSB said in a statement accompanying its results.
Updated: May 18, 2021 01:25 PM