The chief executive of Abu Dhabi Ship Building will leave the company at the end of the month, after a year in which the market value of the government-controlled shipyard dropped by a third on heavy losses.
Mohamad Salem Al Junaibi will retire from his post after exactly two years at the helm of ADSB, the company said in a filing to the Abu Dhabi bourse. The share price went into tailspin on the news, dropping by 6.67 per cent to 98 fils. Shares had sold for Dh1.51 at the beginning of last year.
"The board of directors reluctantly accepted the request by Mohamed Salem Al Junaibi to retire from ADSB with effect from 31st December 2012," the company said.
The shipyard made healthy profits last year, but its finances were hit by a loss of more than Dh35 million (US$9.5m) in the second quarter of this year.
Mr Junaibi will be replaced by the company's chief financial officer, Ian Pike, who will step in as acting chief executive.
Mr Al Junaibi previously worked with the company for five years, most recently as general manager. Before joining ADSB, he served in the UAE Navy.
ADSB is one of the most advanced naval shipyards in the region, and the only regional company with the capability to build, refit, repair and upgrade sophisticated warships. It employs more than 1,200 people.
Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, holds a 40 per cent stake in ADSB, which was founded in 1996.
Last year, the company made a profit of about Dh41m. In the first nine months of this year, it lost Dh20.9m.
The shipbuilder in June launched its first Ghannatha class missile boat built in Abu Dhabi for the Navy. Under a Dh935m contract, ADSB will construct nine of the boats and retrofit 12 other vessels to carry heavier weaponry.
The vessels are all to be delivered by 2014. ADSB wants to sell additional vessels to other navies in the region.