Senaat profit up 5 per cent to Dh923m

Hussain Jasim Al Nowais, chairman of Senaat. Silvia Razgova / The National

Abu Dhabi industrial output received a boost as the conglomerate Senaat reported a 5 per cent increase in last year’s profits to Dh923 million.

Top-line earnings rose 9.1 per cent to Dh2.1 billion. Revenues were 16 per cent higher at Dh13.4bn “supported by resilient financial performance delivered across portfolio companies operating in different sectors”, the company said.

The chairman, Hussain Jasim Al Nowais, reiterated plans to invest Dh5bn over the next two years in industrial projects.

“We have identified a number of attractive options into which we intend to invest, as we continue to seek opportunities to diversify our portfolio and deploy capital to fuel the growth of Abu Dhabi’s industrial asset base,” he said.

“Senaat invested nearly Dh1bn into the industrial sector last year, raising the group’s total industrial investments to over Dh18bn. Senaat will continue to build on efforts to support the industrial development of Abu Dhabi and the UAE,” he said.

Senaat has built competitive, world-class businesses in sectors that include metals, oil and gas services, construction and building materials, and food and beverage.

There has been speculation that Senaat would seek an initial public offering for all or part of its operations, but Mr Al Nowais appeared to indicate that the group did not need any new capital.

“Senaat’s solid financial footing has been confirmed, highlighting the company’s self sufficiency as it reinvested its profits into the development of new and existing projects, without any funding from the government,” he said.

“Senaat has completed the year with robust revenue and profit growth despite a volatile economic environment, thanks to its flexible business model and its ability to weather the impact of market volatility and economic cycles.

“The company is making major strides in realising the Abu Dhabi Economic Vision 2030 of diversifying the emirate’s economy and income away from oil and to strengthening its industrial sector,” he added.

“Senaat plays an active role in local job creation and development of the national workforce. All of the company’s top executives are UAE nationals, and total Emiratisation has reached 55 per cent, highlighting the strategic drive to attract and develop national talent,” the company said.

Among subsidiaries that contributed to the successful year, the oils services contractor NPCC reported a 41 per cent rise in revenue to Dh4,23m, aided by a robust order book secured in previous years.

The building materials company Arkan maintained market share while boosting revenue from its newly completed Al Ain Cement plant. Total revenue for the year nearly doubled to Dh752m.

Results from Agthia, the food and beverage unit that has been the subject of IPO speculation, reflected sales growth of 9 per cent with total revenues at Dh1.7bn.

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