National Marine Dredging Co (NMDC), engaged in the business of land reclamation and marine dredging, has posted a net profit of Dh34.75 million in 2003, down 43.9 per cent compared to the previous year.
Lack of steady business, piling outstanding bills and cash flow delays have impacted the Abu Dhabi listed company's bottomline.
However, the company has declared a dividend of 20 per cent (Dh20 per share), lower compared to last year's dividend of 35 per cent.
The company's total revenues during 2003 were Dh309.78 million compared to Dh362.30 in 2002. Provisions for doubtful debts is Dh12.75 million. Earnings per share (EPS) fell to Dh34.76 from Dh61.95.
"The company is not getting many new projects and there's been no steady business. Therefore, it is incurring losses year after year. Besides, it has some cash flow problems with many outstanding bills," a senior analyst told Gulf News yesterday.
Trade and other receivables have remained a high Dh252.93 million in 2003 compared to Dh230.22 million the previous year. The cash and bank balances have dropped to Dh785,506 ending 2003 from Dh35.11 million in 2002.
Gulf News
