Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
NMDC Energy reported strong top-line growth for the first quarter of 2026, driven by the steady execution of its project portfolio and supported by a robust backlog, even as the company navigated a challenging regional environment.
Revenues rose to Dh5 billion, marking a 33% year-on-year increase, reflecting continued conversion of its sizeable order book into income. The company’s backlog stood at Dh35.3 billion as of March 2026, providing solid visibility for future earnings.
NMDC Energy also maintained a strong liquidity position, with cash and bank balances at Dh3.5 billion, underscoring its financial resilience and flexibility to pursue opportunities. On the balance sheet, total assets were reported at Dh19.4 billion, while total equity stood at Dh5.4 billion.
The company said its performance was supported by disciplined execution and business continuity measures, which enabled it to sustain operations despite the prevailing geopolitical situation.
Mohamed Hamad Almehairi, Chairman of NMDC Energy, said: “The performance this quarter reflects the resilience of the UAE economy and the strength of its leadership in navigating a complex regional environment. The government’s proactive and coordinated approach has ensured stability, continuity, and confidence across key sectors, enabling companies like NMDC Energy to operate and continue contributing to the country’s long-term development priorities.”
Eng. Ahmed Salem Al Dhaheri, CEO of NMDC Energy, added: “Our priority throughout the quarter was disciplined execution, operational continuity and financial prudence. We successfully maintained momentum across our projects, converted backlog into revenues despite a more challenging operating environment. This demonstrates the strength of our leadership, people, processes and long-term business fundamentals.”
At the same time, some profitability metrics were impacted during the quarter, with EBITDA at Dh197 million and net profit at Dh80 million, both lower year-on-year, reflecting higher costs related to logistics, fuel, insurance and project execution amid regional conditions. Earnings per share came in at Dh0.016, while free cash flow was negative at Dh120 million, alongside net working capital of Dh(1.5) billion and capital expenditure of Dh121 million.
NMDC Energy’s stock indicators also reflected steady investor confidence, with the share closing at Dh2.77, up 19% year-to-date, translating into a market capitalisation of Dh13.9 billion. The stock is currently trading at a price-to-earnings multiple of 9.5 times, with an average target price of Dh3.55, implying a potential upside of around 28%, according to the data highlighted in the company’s presentation.
