Ducab reports record $980 million sales
Dubai, April 27, 2011
Ducab, one of the leading manufacturers of high-quality power cables in the Middle East, has announced record sales of Dh3.6 billion ($980.17 million) for 2010, representing a 51 per cent increase over the previous year.
The company reported 47 per cent volume growth with full realisation of copper rod capacity.
A Ducab statement did not provide profit figures.
Going forward this year, despite the global economic downturn and a rise in copper prices, Ducab anticipates a further increase in volumes of about 15 per cent compared to 2010, said a statement.
Ducab has seen a successful 2010 despite competitive margin pressures, with the company’s local UAE market share maintained at between 33 and 50 percent, depending on the cable segment.
Last year’s record sales comprised cable and wire sales of Dh2.2 billion while the external sales of copper rod accounted for the balance Dh1.4 billion. Significant areas of growth included 22 per cent higher sales to utilities and a 143 per cent increase in sales to the oil, gas and petrochemical sector.
Ahmad Al Shaikh, chairman of Ducab, attributed the company’s success to expansion into new sectors and markets within the Middle East, Europe, Africa, and Asia, as well as the addition of eight new product ranges to the company’s portfolio.
Cost and efficiency improvement contributed too with savings of Dh17 million achieved through operational efficiencies and cost optimisation initiatives.
In 2010 Ducab repaid, on the due dates, Dh182 million and pre-paid Dh100 million, representing 35 per cent of term finance obtained for such previous expansions. Ducab’s shareholders equity has also increased by Dh 100 million by the end of 2010, besides a dividend payout of Dh 50million.
Looking ahead to further expansion, Ahmad Al Shaikh highlighted Ducab HV, the Dh500 million joint venture project with Dewa and Adwea as 25 per cent partners. “This exciting project is nearing completion and will be the major addition to the product range this year; catapulting Ducab to the next level with Extra High Voltage cable systems up to 400kV produced in a world class facility here in the UAE”. - TradeArabia News Service