Abu Dhabi firm expects $342m navy ship deal

[DUBAI] Abu Dhabi Ship Building Co (ADSB), the state-linked builder of commercial and naval vessels whose shares have doubled this year. is close to signing a one billion-dirham (S$342 million) contract with the United Arab Emirates. The contract to build two navy ships may be signed this month, head of finance Muhammad Shahid Razzaq said on Wednesday.

The company is also negotiating a higher-valued deal that could be finalised next year, he said, declining to provide further details. ADSB, which is 10 per cent owned by the government of Abu Dhabi and 40 per cent held by Mubadala Development Co, is changing its business strategy. The company plans to focus more on providing services rather than building ships, Mr Razzaq said.

"ADSB is going through management restructuring to align its management with the new business strategy and there can be more changes," he said.