Continues to play a key role in Abu Dhabi's high-growth industrial sector

24 April 2013, Abu Dhabi, UAE - Senaat (General Holding Corporation), one of the largest industrial holding companies in the UAE, today announced its financial results for the fiscal year ending 31 December 2012. The Group's revenues increased by 7.2% to AED 12.3bn (2011: AED 11.5bn), with total assets growing by 7.8% to AED 25.4bn (2011: AED 23.5bn).

Commenting on the Group's strong financial performance, H.E. Hussain Jasim Al Nowais, Chairman of Senaat, said: "Senaat is focused on supporting the expansion of Abu Dhabi's industrial sector in line with the Government's plan to diversify the economic base by boosting the role of non-oil industries in the local economy. Since 2004, Senaat has invested nearly AED 16bn with industrial investments of AED 2.2bn in 2012 alone.

"Consistent with Senaat's historical growth trajectory, revenues for the year reached AED 12.3 billion, reflecting a 7% rise," Al Nowais said. He added that earnings before interest, tax, depreciation and amortisation (EBITDA) for the year were up 7.5% to AED 2.3 billion (2011: AED 2.1bn) as Senaat expanded its EBITDA margin to a robust 18.3%.

"Senaat's strategy is to maximise the value of its portfolio companies and their contribution to the industrial GDP of Abu Dhabi and the UAE. Growth, sustainability and commercial viability are the paramount drivers in achieving this objective and our financial results reflect successful implementation of our strategy."

Engineer Suhail Bin Athaeeth, Chief Executive Officer of Senaat, commented: "Senaat's sustained revenue and asset growth underpins the Group's superior track record of value generation and the success of its disciplined financial strategy. The prudent approach that Senaat has been applying is instrumental in allowing the Group to be self-sufficient in its financing and to reinvest profits into the development of new and existing projects.

"During 2012, we grew our industrial assets by adding new production capacity in steel manufacturing, building new cement and blocks production facilities and adding new vessels to our existing fleet for oil and gas services. All of this new investment is consistent with our strategy to engage in industrial projects which have high potential for growth and long-term stability."

Shareholders' equity grew by 11.4% to AED 10.9bn over the period, and net profit for the year was AED 1.3bn (2011: AED 1.5bn) representing a return on equity of 12.6%.

Operational highlights

Through effective management of its investment portfolio and the privatisation of assets as well as direct investments, Senaat currently operates in four key sectors highlighted in Abu Dhabi Economic Vision 2030 as part of the emirate's economic diversification. These are: metals, oil and gas services, construction and building materials, and food and beverages.

During 2012, Senaat's portfolio companies reached new milestones. The following are operational highlights at the individual company level:

Emirates Steel Industries ("ESI"), the only integrated steel producer in the UAE and one of the largest integrated steel producers in the GCC, completed its AED 6 billion Phase 2 expansion programme in the Industrial City of Abu Dhabi in 2012. Phase 2 is the second expansion project which has increased ESI's production to nearly three million metric tonnes per annum and moves ESI towards more higher value-add products.

National Petroleum Construction Company ("NPCC") is a major international contractor providing integrated onshore and offshore oil and gas fabrication, support and EPC services. In 2012, NPCC's focused on expanding its geographical reach and on increasing its engineering capabilities and offshore/onshore capabilities while enhancing its cost optimisation.

Arkan Building Material Co. (Arkan), which specialises in the manufacture of building materials in the UAE, completed in 2012 the construction of its new fully integrated Al Ain Cement Factory and added additional blocks production capacity. This makes Arkan the only integrated player in Abu Dhabi with the largest clinker and cement production capacity.

Dubai Cable Company Ducab, a joint venture between the Abu Dhabi and Dubai governments and one of the leading manufacturers of high-quality power cables and wires in the Middle East, continued to benefit from the high/extra high voltage plant it commissioned and inaugurated in 2011, through a venture with ADWEA and DEWA, the leading local utilities providers.

Agthia Group is one of the UAE's most prominent food and beverage groups with assets across the Middle East, North Africa and Turkey. In 2012, Agthia acquired a Turkish water bottling plant with direct access to a natural spring water source, which will enable it to enter the premium "natural spring" water segment in the UAE and the wider geography.

Al Foah, manages the process of packaging, distributing and marketing dates in Abu Dhabi to 35 different countries. Its expansion strategy includes developing strong recognized brands and introducing new products.

Taweelah Aluminium Extrusion Company TALEX is a joint venture to develop and build a 50,000 metric tonne capacity, state-of-the-art Aluminium Extrusion plant based at Khalifa Industrial Zone Abu Dhabi (KIZAD). In late 2012, construction started on the AED 730m plant and the first extruded metal is expected to be produced by the second quarter of 2014.

H.E. Al Nowais concluded: "Senaat has laid a solid foundation for future growth and will continue to strive to increase its contribution to the industrial base of the emirate of Abu Dhabi. Our future strategy is to continue to add value to portfolio companies while seeking new investments in capital- and energy-intensive industries."

-Ends-

For Media Enquiries:
Senaat
Ohood Al Suwaidi
Corporate Communication Manager
+971 2 6988548
Ohood.AlSuwaidi@senaat.co

Brunswick Group
Heather Salmond or
Nabih Tarabay
+971 (0)2 2344600
Senaat@brunswickgroup.com

About Senaat
Senaat is one of the UAE's largest industrial investment holding companies, managing more than AED 25.4 billion (US$6.9 billion) of industrial assets on behalf of the Government of Abu Dhabi. Mandated to create, optimise, promote and champion capital- and power-intensive assets, Senaat is a key contributor to Abu Dhabi's Economic Vision 2030 which aims to further the Emirate's economic diversification by stimulating non-oil sectors. Senaat has invested over AED 16 billion (US$ 4.4 billion) in the non-oil sector since 2004.

Senaat thrives on the development of UAE national human capital through leadership development, job creation and knowledge transfer. Senaat employs more than 18,000 staff, and its leadership is made up entirely of UAE nationals.

Its portfolio companies benefit from Senaat's unique ability to source innovation, create and grow businesses and provide proactive, strategic input through to commercial productivity. Senaat aligns itself with its portfolio companies to build world-class companies:

  • Emirates Steel Industries, the only integrated steel producer in the UAE and one of the largest integrated steel producers in the GCC.

  • National Petroleum Construction Company (NPCC), a major international contractor providing integrated onshore and offshore oil and gas fabrication, support and Engineering, Procurement and Construction (EPC) services.

  • Arkan Building Materials Co (Arkan), which specialises in the manufacturing of building and construction products in the UAE.

  • Dubai Cable Company Ducab, a joint venture between the Abu Dhabi and Dubai governments and is one of the leading manufacturers of high-quality power cables and wires in the Middle East.

  • Agthia Group, one of the UAE's leading food and beverage groups with assets across the Middle East, North Africa and Turkey.

  • Al Foah, the largest date company in the world which manages the process of packaging, distributing and marketing dates in Abu Dhabi to 23 different countries.

  • Taweelah Aluminium Extrusion Company TALEX, a joint venture to develop and build a 50,000 metric tonne capacity, state-of-the-art Aluminium Extrusion plant based at Khalifa Industrial Zone Abu Dhabi (KIZAD).

For further information, please visit our website: www.senaat.co

© Press Release 2013