NMDC Energy

1. Company Overview & Earnings Context

NMDC Energy is an ADX-listed engineering, procurement, and construction (EPC) company specializing in offshore and onshore energy infrastructure. The company provides integrated services for the oil & gas industry across the UAE and international markets, supported by a sizeable project backlog and expanding regional operations.

For H1 2026, NMDC Energy reported strong revenue growth driven by backlog execution despite regional geopolitical challenges. However, profitability declined due to operational challenges and cost overruns, although the company maintained a healthy backlog and continued to secure new project awards.

2. Financial Performance Snapshot

• Revenue: AED 9.48 Billion (+16% YoY)

• EBITDA: AED 549 Million (-31% YoY)

• EBITDA Margin: 5.8% (vs. 9.7% in H1 2025)

• Profit Before Tax: AED 327 Million (-49% YoY)

• Net Profit After Tax: AED 251 Million (-57% YoY)

• Net Profit Margin: 2.6% (vs. 7.1% in H1 2025)

• Net Profit Attributable to Shareholders: AED 250 Million (-57% YoY)

• Earnings Per Share (EPS): AED 0.05 (-57% YoY)

Compared with H1 2025:

• Revenue increased from AED 8.17 billion to AED 9.48 billion.

• EBITDA declined from AED 794 million to AED 549 million.

• Profit before tax fell from AED 639 million to AED 327 million.

• Net profit declined from AED 583 million to AED 251 million due to lower margins resulting from operational challenges and cost overruns.

3. Operational Highlights & Key Metrics

• Project Backlog: AED 33.3 Billion

• New Projects Awarded (H1 2026): AED 2.2 Billion

• Total Assets: AED 19.8 Billion

• Total Equity: AED 5.6 Billion

• Cash & Bank Balances: AED 3.3 Billion

• Net Cash Position: AED 3.1 Billion

• Free Cash Flow: AED (200) Million

• Capital Expenditure: AED 225 Million

• Net Working Capital: AED (1.2) Billion

• Revenue Mix: 72% Local / 28% International

• Revenue Mix: 56% Offshore / 44% Onshore

• Healthy project pipeline estimated at approximately AED 55.2 billion as of June 2026.

4. Key Performance Drivers

Revenue growth was supported by strong execution of the company's large project backlog despite ongoing regional geopolitical unrest. Profitability, however, was impacted by operational challenges and cost overruns, leading to lower EBITDA margins and net profit compared with the previous year. Working capital movements, including lower client advances and job accruals, significantly reduced operating cash flow, while capital expenditure of AED 225 million was directed toward the KSA fabrication yard, UAE yard upgrades, equipment purchases, and maintenance projects.

5. Outlook & Forward Guidance

NMDC Energy continues to maintain a strong backlog of AED 33.3 billion alongside an estimated project pipeline of approximately AED 55.2 billion, providing good revenue visibility over the coming years. During H1 2026, the company also expanded its long-term growth strategy through multiple partnerships focused on local manufacturing, technology transfer, and industrial localization, positioning the business to support future energy and infrastructure projects across the region.

6. Investor Takeaway

NMDC Energy delivered double-digit revenue growth in H1 2026 despite a challenging operating environment. While margins and earnings came under pressure from cost overruns and geopolitical disruptions, the company's substantial backlog, healthy project pipeline, strong net cash position, and continued business development initiatives provide a solid foundation for future growth.