Ducab hits record $1.34 billion sales in 2011
UAE cable manufacturer delivers 39% increase on 25% utilities growth
Ducab has announced record sales of US$1.34 billion (AED 4.9bn) for 2011, representing a 39% increase over the previous year. Significant areas of growth included 25% higher sales to the Utilities sector and a record 250% increase in sales to the oil, gas and petrochemical sector.
Commenting on the results, Ahmad Al Shaikh, Chairman of Ducab, said: “Our success in 2011 was the result of successful expansions and addition of new product ranges, and managing our financials. We have ventured into new sectors and markets within different regions, and repaid by due dates loans of $64 million, as well as paying dividend to our shareholders. Our shareholders equity also increased by $37.6 million by the end of last year.”
“As a privately held concern, we are under no obligation to file detailed financial results, but I must stress that our underlying profitability has doubled in 2011 as compared to 2010, which is a huge achievement for Ducab,” he added.
A major highlight in Ducab’s 2011 achievements was the inauguration of Ducab HV, a $136.12 million high voltage cable plant, and a joint venture between DEWA, ADWEA and Ducab, by H.H. Sheikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai. Ducab-HV represents a huge benefit to the UAE economy as it offers excellent quality alternatives to imports. The plant’s products cover the highest voltages used in the GCC, ensuring that Ducab’s utility partners and other customers can source energy infrastructure and cables from a local supplier.
“Ducab-HV will offer exceptional quality, stringently tested, high voltage products and cables to local and regional markets, thereby providing a very viable alternative to imports. It presents a significant step in Ducab’s ethos of innovation and R&D, and will meet the highest voltage requirements in the UAE and GCC,” he said.
Ducab’s cables sales were almost $817 million (AED3bn) for the year with growth driven by strong sales in all GCC markets.
“Last year was a challenging period worldwide in the cabling industry, with sectors generating major demand, such as real estate and construction, not seeing much activity. However, we were able to complete the first half with good results which continued as well in the second half to round up a very successful 2011. UAE National Development continues to be a core focus with 40% of senior management and 18% of white collar staff positions held by UAE Nationals”.
“We are always eager to focus on Ducab’s strengths of customer service and product quality, driven by our strong belief that such commitment to high quality and exceptional value will continue to further increase the sale of Ducab cables and allied products across the region,” Al Shaikh concluded.
Ducab has also initiated several measures to ensure environmental sustainability. Water conservation is an important element of Ducab’s green strategy, with its Jebel Ali plant treating and reusing 100 percent of its water for irrigation. Ducab facilities are air conditioned by units that have high energy efficiency ratios (EER), while energy efficient lighting alternatives are also being investigated. In addition, Ducab has increased its investment in copper recycling equipment across all its sites.
Ducab’s cables and copper products are currently sold in over 40 countries worldwide across Middle East, Europe, Africa, and Far East in Asia, and this number will only grow in coming months and years. Approximately 60% of Ducab’s total sales are made outside the UAE market.