Ducab, one of the region’s largest manufacturers of high-quality power cables and copper products in the Middle East, said its revenue for 2012 hit Dh4.2 billion ($1.14 billion) compared to Dh4.9 billion.

The drop in revenue was mainly due to a 10 per cent fall in copper prices over the same period coupled with the change in product mix, said the company in its statement.

The key areas of growth included 24 per cent higher sales to the oil, gas and petrochemical sector and an increase of 42 per cent in cable exports including a 72 per cent increase in International markets, it stated.

Commenting on the results, chairman Jamal Al Dhaheri said: "Our success in 2012 was the result of successful expansions in new markets and introduction of new products coupled with tight financial control. We have ventured into new sectors and markets across various territories."

According to him, Ducab increased market share in the core market of UAE despite increasingly difficult market conditions in 2012. "Our traditional strength in the home market was reinforced with innovative promotions to support the distribution chain," he stated.

Al Dhaheri pointed out that Ducab remained financially strong and was able to slash borrowings by Dh198 million during the year.

The core business profitability was up 10 per cent from the previous year and the Board agreed to increase dividend to our shareholders by 25 per cent, he observed.

Another highlight was the first full year of operation of Ducab HV, the Dh500m high voltage cable plant that opened during the previous financial year.

In addition to supplying high voltage cables to both its utility partners, ADWEA and DEWA, Ducab HV was also successful in winning its first major export order for MEW Kuwait valued at Dh62 million.

This export success was achieved two years ahead of the target set in the original business plan. Ducab HV also successfully completed 132,000V system type tests in its own extra-high voltage test facilities under the close scrutiny of the utility specialists and independent third party expert witnesses.

The results were achieved in large part to an increase in sales to export markets, which helped to offset the softer levels of demand seen from Ducab’s home market.

Ducab’s cables and copper products are currently sold in over 40 countries worldwide across the Middle East, Europe, Africa, and Far East. Approximately 55 per cent of Ducab’s total sales are made outside the UAE market, as Ducab looks to penetrate new high growth markets in Africa and Asia.

Al Dhaheri noted that Ducab has continued to invest and develop the business through the recent downturn and proudly announced that Ducab will shortly start production of Rubber Cables at its Musaffah Abu Dhabi factory.

"These cables are used in specialised industrial applications and it is believed that Ducab will be the first company to manufacture them in the Mena region," he stated.

“Ducab continues to leverage its strengths in customer service and product quality to develop new products and markets, driven by a strong belief that such commitment will continue to further increase the sale of Ducab cables and allied products across the region,” he added.

A major player in the cable industry, Ducab is jointly owned by the governments of Dubai and Abu Dhabi and has one of the most modern manufacturing units in the region.

Today, Ducab produces over 105,000 copper tons equivalent of low voltage, medium and high voltage cables, emerging as the leader and the first choice of prestigious customers in the Middle East.-TradeArabia News Service