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 on Tuesday 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.
Follow The National's Business section on Twitter