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Shopping trip for NMDC Energy boss after blockbuster IPO

By Eva Levesque
NMDC Energy provides engineering, procurement and construction for energy giants such as Adnoc and Saudi Aramco Shutterstock
NMDC Energy provides engineering, procurement and construction for energy giants such as Adnoc and Saudi Aramco
  • UAE’s biggest listing of the year
  • ‘M&A soon’, says Ahmed Al Dhaheri
  • Focus on South East Asia and Africa

NMDC Energy is looking for merger and acquisition targets after delivering the UAE’s biggest initial public offering of 2024, its CEO has told AGBI.

Ahmed Al Dhaheri said the Emirati company, which listed on the Abu Dhabi exchange on Wednesday, would announce “some M&A soon” and was focusing on expansion outside the Gulf. 

He also highlighted its “record growth” despite weakening oil markets. “Our revenues grew by 88 percent in the first half of the year, while our net profit increased by 102 percent.”

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Shares in NMDC Energy, which provides engineering, procurement and construction services to offshore and onshore energy businesses, rose 20 percent in its first day on ADX. The IPO raised $877 million.

Al Dhaheri said it had diversified its revenue streams since oil prices crashed in 2014 and is now targeting opportunities in South East Asia and Africa. 

“We are already present in Taiwan, with projects in the offshore wind sector. Malaysia is a target market for us,” he said.

The company, formerly called NPCC, is looking at offshore and onshore projects in Libya, as well as seeking work in Nigeria and Angola.

In Europe, NMDC Energy aims to develop its presence in the offshore wind sector.

“Our strategy is based on both organic and inorganic growth. There will be some M&A soon,” said Al Dhaheri.

He pointed to the rebound in capital expenditure on upstream oil and gas last year. This would be good for the business’ home market, he said, and the focus on global opportunities did not mean it has stopped chasing projects in the UAE and Gulf.

“We see an unprecedented surge in projects in the UAE and in the region. Contractors are overwhelmed,” he said.

Global upstream capital expenditure increased by $63 billion in 2023, according to the International Energy Forum.

Ahmed Al Dhaheri (second from left) and other NMDC executives mark its listing on ADXSupplied
Ahmed Al Dhaheri (second from left) and other NMDC executives mark its listing on ADX

Al Dhaheri estimates that about $170 billion will be invested across upstream and downstream activities in the Gulf this year, and said he remained confident about NMDC Energy’s upstream work even if oil prices drop further.

Brent crude has fallen by more than 22 percent in the past year and is now trading at about $70 a barrel.

This year NMDC Energy has won work from state oil giant Adnoc, including a $200 million dredging contract for a natural gas export facility.

Al Dhaheri added: “We are heavily active in Saudi Arabia, and we are trying to strengthen our position there by investing $200 million in a fabrication yard in Ras Al Khaimah,”

The 400,000-sq m-yard will manufacture oil platform equipment destined for Saudi Arabia and is expected to be fully operational by the end of the year.

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