Du­cab makes steady progress amid chal­leng­ing cli­mate

The National - News - Business - - Front Page - An­thony McAuley

Du­cab, the UAE’s strate­gic ca­ble wiring man­u­fac­turer, says last year was one of steady fi­nan­cial progress in a tough mar­ket.

The com­pany, which is jointly owned by In­vest­ment Cor­po­ra­tion of Dubai and Abu Dhabi-owned in­dus­trial con­glom­er­ate Se­naat, does not make its ac­counts pub­lic, but said in its an­nual re­port yes­ter­day that au­dited sales last year rose 10 per cent, with­out pro­vid­ing any com­par­a­tive num­bers.

Pre­vi­ously, the com­pany re­ported rev­enues of US$1.5 bil­lion for 2015, im­ply­ing rev­enue was about $1.65bn last year.

The com­pany said that its earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion (Ebitda) were up 15 per cent last year, also with no com­par­a­tive num­bers. How­ever, Du­cab’s out­go­ing chair­man, Ah­mad Al Shaikh, im­plied the com­pany was prof­itable: “De­spite an­other chal­leng­ing year, the Du­cab team de­liv­ered … [an] im­proved sales per­for­mance [last year] that re­sulted in marked im­prove­ment in prof­itabil­ity across all busi­ness units,” he said.

Mr Al Shaikh was re­placed by Ja­mal Al Dha­heri as chair­man in March un­der the ro­ta­tion sys­tem Du­cab’s two own­ers have in place.

The com­pany high­lighted the fact it has reduced its short-term bor­row­ing by Dh228 mil­lion, al­though it did not give any num­ber for short-term or over­all bor­row­ing. The com­pany said it in­creased its div­i­dend to its two share­hold­ers.

Du­cab said it in­creased over­seas sales by 25 per cent. This in­cluded last year’s break­through deal to sup­ply the bulk of ca­bling for the two Shin Hanul nu­clear re­ac­tors be­ing built for op­er­a­tor Korean Hy­dro-Nu­clear Power in South Korea.

It is Du­cab’s first in­ter­na­tional nu­clear-re­lated con­tract, build­ing off its in­volve­ment in Abu Dhabi’s huge nu­clear pro­gramme at Barakah, in the West­ern Re­gion, which also is be­ing built mainly by Korea’s nu­clear com­pa­nies.

Du­cab plans fur­ther ex­pan­sion in alu­minium prod­ucts. Year be­fore last, Du­cab Alu­minium – a 60 per cent Du­cab, 40 per cent Se­naat joint ven­ture – com­mis­sioned its first fac­tory, a $60m plant at Khal­ifa In­dus­trial Zone Abu Dhabi (Kizad), ad­ja­cent to Emi­rates Global Alu­minium, which sup­plies its raw ma­te­rial.

Du­cab says it plans to of­fi­cially open the Kizad plant later this year and ex­pand its prod­uct port­fo­lio to in­clude alu­minium rods and con­duc­tors, which it aims to ramp up to 50,000 tonnes per an­num.

Razan Alza­yani / The National

Du­cab, jointly owned by In­vest­ment Cor­po­ra­tion of Dubai and Se­naat, said sales last year rose by 10 per cent.

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