Dubai Drydocks suffers drop in business

“There has been a general downturn in the marine business altogether, which will be felt more this year than last year,” said Geoff Taylor, chief executive and executive chairman of Drydocks World.

In June, the shipyard will be delivering the $153 million Polarcus Asima, the third 3-D seismic vessel of Norwegian design built by Drydocks Dubai. The newbuilding, now undergoing final touches, is the third in a series of six seismic vessels being built at the yard for Polarcus, the Norwegian marine geophysical company.

Rolf Ronningen, chief executive of Polarcus, said it is currently seeking financing to exercise the option for the last two vessels of the six. “There is time for a small consolidation before we take the next step,” he said at the naming ceremony of Polarcus Asima. He said the company would look for financing in the Middle East region, as well as European markets.

Valued at $153 million, the contract to Drydocks Dubai for building it was worth $45 million, according to Taylor.

Ronningen said that the vessel, scheduled for delivery in June, is not signed yet. “We don’t have work for it yet, but are looking for work in the Asia Pacific and East or West Africa region,” he said. As financing became a greater issue, the impact is being felt in the ship building yards. Taylor said that carry-on work from the previous years will run out and 2010 will see a greater impact of the global downturn. “We are now looking for work for our yard for the end of this year,” he said, which has dropped by 30 percent.

The shipyard is currently working on six vessels for this year, each at a contract value of about $50 million. During a visit to the UAE, Crown Prince Haakon of Norway visited the vessel with a business delegation yesterday. “We’re looking for business cooperation in many fields. I think the future here in the UAE is full of opportunity, for more cooperation between the emirates companies and their Norwegian counterpart,” he said.

Meanwhile, a free trade treaty has been signed between the UAE and Norway to be ratified later this year, expected to further boost bilateral trade.