ADSB
,414-1±19 °mull ci -41
Discussion
Management
and Analysis
HIGHLIGHTS
Revenue for the period ending 30 June 2022 was AED 373 million, more than 3 times ahead of the AED 104 million for the comparable period in 2021. The increase was primarily due
to the current period's contribution of the prestigious Falaj3 contract to build four new
Offshore Patrol Vessels for the UAE Navy which started in the late fourth quarter of last
year. The first milestone of the project has been completed ahead of schedule during the
current period with two further milestones scheduled in the second half of the year.
The net profit for the period was AED 5.2 million, compared with a net loss of AED (10.2)
million for the same period in 2021, even after a gain of AED 17.6 million on disposal of
floating dock was realized in April 2021, though the Company eventually reported a net
profit of AED 11 million for the full year 2021, after realizing AED 23.7 million of other
income attributed to the net reversal of provisions, and which saw the Company return to
profit after three years of net losses.
The net profit for the period would have been AED 11.7 million before the effect of an
increased IFRS 9 provision on receivables and contract assets resulting from a significant
increase in Central Bank interest rates impacted by the current economic situation. It is
expected that a proportion of this provision will be reversed on receipt of payments in due
course.
The Company has successfully delivered in the period the contract for the procurement
and refurbishment of a tug for one of its major customers, and delivered the order to build
three VIP Limos during the period. Additionally, the Company completed the delivery and
commission of specialized equipment under a military program while continuing its MSS
Military and Commercial repair and maintenance operations. During the period a total of
Mussafah Industrial Area atLAticui ddbin
P.O. Box 8922 8922 :y.Lp
Abu Dhabi, UAE Elia:ix:di dwell amyl ,..n.±39i1
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Abu
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P.O.
Box
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Mussafah
Industrial
Area
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Military
and Commercial
repair
and
maintenance
operations.
During
the
period
a total
of
commission
of
specialized
equipment
under
a
military
program
while
continuing
its
MSS
three
VIP Limos
during
the
period.
Additionally,
the
Company
completed
the
delivery
and
and
refurbishment
of
a
tug
for
one
of
its
major
customers,
and
delivered
the
order
to
build
The
Company
has
successfully
delivered
in
the
period
the
contract
for
the
procurement
course. expected
that
a proportion
of
this
provision
will
be reversed
on
receipt
of
payments
in due
increase
in Central
Bank
interest
rates
impacted
by
the
current
economic
situation.
It
is
increased
IFRS
9
provision
on
receivables
and
contract
assets
resulting
from
a
significant
The
net
profit
for
the
period
would
have
been
AED
11.7
million
before
the
effect
of
an
profit
after three
years
of
net
losses.
income
attributed
to
the
net
reversal
of
provisions,
and
which
saw
the
Company
return
to
profit
of AED
11
million
for
the
full
year
2021,
after
realizing
AED
23.7
million
of
other
floating
dock
was
realized
in
April
2021,
though
the
Company
eventually
reported
a net
million
for the
same
period
in 2021,
even
after
a gain
of
AED
17.6
million
on
disposal
of
The
net
profit
for
the
period
was
AED
5.2
million,
compared
with
a
net
loss
of
AED
(10.2)
current
period
with
two
further
milestones
scheduled
in
the
second
half
of
the
year.
year.
The first
milestone
of the
project
has
been
completed
ahead
of
schedule
during
the
Offshore
Patrol
Vessels
for the
UAE
Navy
which
started
in
the
late
fourth
quarter
of last
to
the
current
period's
contribution
of
the
prestigious
Falaj3
contract
to
build
four
new
of
the
AED 104
million
for
the
comparable
period
in
2021.
The
increase
was
primarily
due
Revenue
for the
period
ending
30
June
2022
was
AED
373
million,
more
than
3
times
ahead
HIGHLIGHTS
and
Analysis
Management
Discussion
°mull
cli
41
,414-1±19 ADSBADSB
04--b9
dearth cl
94 dockings were completed, and ADSB received an LOI from its major customer for the
major refit of the second of class vessel of a previously delivered naval ship build program.
Though the five-year Falaj3 contract will provide ADSB with a sustainable basis for future
growth and profitability, ADSB continues to be very active in pursuing both additional
domestic and export sales opportunities. The Company now has a significant pipeline of
new business opportunities and expects to be able to announce contract signatures in the
second half of 2022.
After payments made to major Falaj3 sub -contractors during the period the net cash
position at June 30 was AED 255 million. The cash position is expected to remain healthy
for the remainder of 2022 but will return to a cash neutral position on the Falaj contract as
payments are made according to the agreed schedules with sub -contractors.
David Massey
Chief Executive Officer
Mussafah Industrial Area ascli011 Euibia
P.O. Box 8922 8922 :y.,p
Abu Dhabi, UAE avian apjall c.)1iLo)11,,n4bg4i
adsb.ae adsb.ae
adsb.ae
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Abu
Dhabi,
UAE
avid!
apjall
c.)1iLo)11,,n4bg4i
P.O.
Box
8922
8922
:y.,p
Mussafah
Industrial
Area
ascli011
Euibia
Chief
Executive
Officer
David
Massey
payments
are
made
according
to
the
agreed
schedules
with
sub
-contractors.
for
the
remainder
of
2022
but
will
return
to
a
cash
neutral
position
on
the
Falaj
contract
as
position
at
June
30
was
AED
255
million.
The
cash
position
is
expected
to remain
healthy
After
payments
made
to
major
Falaj3
sub
-contractors
during
the
period
the
net
cash
second
half
of
2022.
new
business
opportunities
and
expects
to
be
able
to
announce
contract
signatures
in
the
domestic
and
export
sales
opportunities.
The
Company
now
has
a
significant
pipeline
of
growth
and
profitability,
ADSB
continues
to
be
very
active
in
pursuing
both
additional
Though
the
five-year
Falaj3
contract
will
provide
ADSB
with
a
sustainable
basis
for
future
major
refit
of
the
second
of
class
vessel
of
a
previously
delivered
naval
ship
build
program.
94
dockings
were
completed,
and
ADSB
received
an
LOI
from
its
major
customer
for
the
wadi
cl
04--b9 ADSB

Sentiment: positive