Thursday, Mar 01, 2012
Gulf News
Dubai: Ducab has applied to become the preferred cables supplier for the UAEs nuclear power plants and is hopeful of approval by the end of the year, company chairman Ahmad Al Shaikh said yesterday.
The company is working with the Emirates Nuclear Energy Corporation (Enec) on gaining approval from consortium Korea Electric Power Corporation (Kepco), for the construction of the plant in Braqa, Abu Dhabi, according to managing director Andrew Shaw.
However, gaining nuclear specification approval is technically demanding, he added.
We want to be part of the nuclear project in Abu Dhabi so we can supply cables for the stations, but the move is different for nuclear specification approval and we are working with Enec to be accepted as a supplier, Shaw told Gulf News.
Utilities sector
The utilities sector is one of the main areas of growth for Ducab, especially with Fewa expanding electricity projects in the Northern Emirates, Shaw said.
As electricity demand in the UAE is forecast to grow, so do the transmission cables... As the electricity grid in Abu Dhabi grows, it drives cable growth, he said.
The oil and gas sector is also providing massive opportunities for cable sales with the increase in prices encouraging investors to the sector and given Ducabs location in a high-producing area, Al Shaikh said.
Last year, Ducabs main projects were all in Abu Dhabi and included gas processing facilities at Habshan, Shaikh Khalifa Port, Ruwais, Bab Al Shams, Zayed University and St Regis Hotel, Al Shaikh said.
The bigger and faster growing projects are in Abu Dhabi, while Dubai projects are on a smaller scale, Shaw said.
In Dubai theres a steady flow of projects, its stable, when one ends another starts, he said.
Demand has been steady and there is small growth. Demand in Dubai is for smaller projects: some have re-started, some are office projects, but not the big-name ones.
Outside the UAE
Abu Dhabi has the big-name projects. Dubai has the smaller, more diverse business.
Ducab is also revisiting the idea of investments outside the UAE.
The board of directors is studying projects for plants and offices in some Arab countries, which were put on hold as revolutions erupted in the region last year, Al Shaikh said, adding that they had product specification approval in some countries previously.
Any company would look at them [Arab Spring countries] in two ways: promising markets and with caution... there is the issue of payment guarantees, Al Shaikh said.
Theres a lot of interest from these countries, but nothing finalised yet. In the next few months we can get a better picture.
Dubai Ducab is forecasting 10 per cent growth in sales and revenue this year, company chairman Ahmad Al Shaikh said during a press conference called to announce annual results.
The cables company achieved sales of Dh4.9 billion last year, an increase of 39 per cent over 2010, he said, adding that the sales increase did not match the same increase in sales value.
Ducab has seen a whopping 250 per cent increase in sales in the oil, gas and petrochemicals sector and the sales in the utilities sector grew 25 per cent.
The company has repaid Dh235 million in loans on due dates, increased shareholders equity by Dh138 million and paid cash dividends, he added.
Growth drivers
Profits doubled last year compared to 2010 but the company would not reveal its numbers.
Growth drivers included an increase in copper prices, new products introduced to the market, growth in local market share by two to three per cent, projects in the utilities and oil and gas sectors and entry into new markets, Al Shaikh said.
The company is targeting Europe, Africa and South Asia this year, he added.
In Europe, Ducab is seeking approval for French and German product specifications and despite the Eurozone crisis it sees potential in replacements of older infrastructure, he told Gulf News.
The company is aiming to reduce costs and improve efficiency via tighter financial management.
By Deena Kamel Yousef, Staff Reporter
Gulf News 2012. All rights reserved.
