Ducab reports 10% growth in sales volumes for 2016
UAE-based Ducab has reported strong financial performance in 2016 with a reported 10% growth in sales volumes
UAE-based Ducab has reported strong financial performance in 2016 with a reported 10% growth in sales volumes, the company said in a statement.
As a result of high-value new and repeat orders from prominent regional and international customers as well as increased product diversification, Ducab increased its reach in International markets by 25%.
The company also reported a 15% overall EBITDA growth and reduced short-term borrowing by $62m (AED228m).
Commenting on the company’s performance, former chairman of the board at Ducab Dr Ahmad bin Hassan Al Shaikh, said: "Despite another challenging year, the Ducab team delivered FY 2016 with improved sales performance that resulted in marked improvement in profitability across all business units.
“Continuous focus on operational efficiency coupled with successful implementation of several manufacturing optimization initiatives aided the improved results overall.”
The Board of Directors has approved the Company's consolidated financial statements and announced the results for 2016 for the overall cables and metals business.
Jamal Salem Al Dhaheri, chairman of the board at Ducab, said: “Ducab’s ownership structure represents a unique partnership between Abu Dhabi and Dubai, and I am eager to continue the efforts to position Ducab as one of the most successful UAE-owned manufacturing brands.
“We have diversified into new sectors and markets within different regions, and reduced our short term borrowing by AED 228mn, as well as paying an increased dividend to our shareholders.
“Ducab places lot of emphasis on Sharia Complaint Financing and to that effect, 100% of our medium term financings are under sharia structure including the new project (DAC).”
Sales of cables and metals (copper rod and wires) grew both in the domestic UAE market and in a diverse range of export markets in 2016, highlighted by the first-of-its-kind supply of nuclear power-qualified cable range, Ducab NuBICC, to the Korean nuclear power programme.
The company is planning on expanding its product portfolio to include aluminium rods and conductors with the official opening of Ducab Aluminium Company (DAC), located in Khalifa Industrial Zone Abu Dhabi (KIZAD), scheduled to open in the later half of 2017.