Senaat's earnings surpass AED 1 billion in first half of 2015

Abu Dhabi, UAE, 1 August 2015: Senaat, one of the UAE's largest industrial investment holding companies, announced today that its EBTIDA during the first half of 2015 surpassed AED 1 billion, up 18% from H1 2014. The company's net profit also grew by 20% to Dh453 million in H1 2015.

  
Senaat's earnings surpass AED 1 billion in first half of 2015

• EBIDTA up 18% in comparison to H1 2014

• Al Nowais: We contributed significantly to the development of the industrial sector in the UAE and the cultivation of a generation of Emirati industrialists


Abu Dhabi, UAE, 1 August 2015: Senaat, one of the UAE's largest industrial investment holding companies, announced today that its EBTIDA during the first half of 2015 surpassed AED 1 billion, up 18% from H1 2014. The company's net profit also grew by 20% to Dh453 million in H1 2015.

Over the last decade, Senaat successfully grew its profits and enhanced its sustainable income sources as it doubled its EBITDA and increased its total assets by more than 7 times. The company's financial strength enhances its preparedness and readiness to execute future ambitious industrial development projects in the UAE.

Senaat's revenues for the first half of this year were AED 6.8 billion, up 2.5% from AED 6.6 billion in the same period last year.

Commenting on the company's H1 2015 results, His Excellency Hussain Jasim Al Nowais, Chairman of Senaat, said: "Senaat strived since it was reincorporated in 2004 to achieve three key goals. The first is contributing significantly and effectively to the development of the UAE's industrial sector. The second is the development of qualified national cadres capable of leading and managing industrial enterprises and investments. While the third goal is to strengthen the company's financial position and create sustainable revenue sources that will enable it to execute the government's vision and implement its investment plans without burdening the government financially."

Al Nowais highlighted that Senaat has achieved the first goal as the company has contributed significantly to the development of the industrial sector by introducing, establishing and developing multiple projects that operate in four key industrial sectors defined by Abu Dhabi's Economic Vision 2030, namely: metals, oil and gas services, construction and building materials, and food and beverages. Six companies in Senaat's portfolio are today regional leaders in their own sectors.

"Senaat also played an important role in encouraging the private sector to invest in the industrial sector", said Al Nowais. "This was done by partially divesting ownership in two of our portfolio companies, specifically Agthia Group and Arkan Building Materials, and through the creation of Public Private Partnerships that helped us bring technical know-how and advanced technologies to the UAE as clearly demonstrated in the National Petroleum Construction Company (NPCC)."

Senaat's achievement in developing a generation of competent and highly qualified national talent capable of leading and managing industrial projects is manifested in its own senior management team which is 100% Emirati. Emiratisation is a strategic priority for Senaat and its efforts have resulted in 54% of all employees at the holding level being nationals. Through dedicated recruitment and training programmes, Senaat managed to grow the number of Emirati technicians and experts at its portfolio companies and it continues to invest in new programmes that could help cultivate the next generation of Emirati industrialists.

Al Noais also reiterated Senaat's commitment to enhancing its financial position and creating sustainable revenue sources revealing that the company has continued to perform well as reflected in all of its financial indicators. "Senaat invested over AED 18 billion in the last 10 years, bringing the company's total assets to AED 26.8 million as of the end of the first half of this year", Al Nowais added.

Financially independent, Senaat re-invests its profits to further develop its existing companies and establish new projects as it continues to expand its portfolio of companies. Earlier this year, Senaat established Al Gharbia Pipe Company, a joint venture with two of Japan's leading companies in the steel industry.

"Driven by its clear vision, Senaat has multiple investment plans and strategic projects in the pipeline which will contribute further to the diversification of Abu Dhabi's industrial base and increasing the contribution of the non-oil industrial sector in the emirate's GDP," emphasized Al Nowais. "Senaat will continue to seed its own investments through using its own profits and through a prudent approach to debt which is supported by the confidence of financial institutions in the company's ability to fulfil its future obligations," he added.

Looking ahead, Al Nowais expects Senaat to continue on its growth trajectory for years to come. "All success factors are available for Senaat to continue to grow and perform well. It has the financial strength, qualified and competent Emirati management team and a clear investment vision. I am confident that Senaat will continue to successfully deliver on the government's vision and contribute to its diversification efforts."

Senaat is a key contributor to Abu Dhabi's Economic Vision 2030, which aims to diversify economic sectors in the emirate and reduce reliance on hydrocarbon exports as a major source of income. The company also strives to lay solid foundations for world-class industries that help raise the UAE's profile on the world's economic map and further contribute to building a strong and innovation-led knowledge based economy.

Senaat's portfolio includes Emirates Steel (ES), National Petroleum Construction Company (NPCC), Arkan Building Materials Co, Agthia, Al Foah and Ducab, which is a joint venture between the governments of Abu Dhabi and Dubai. The portfolio also includes two companies under development; Taweelah Aluminium Extrusion Company (Talex) and Al Gharbia Pipe Company.

-Ends-

Mouaffak Hajjar
Brunswick Group
Phone: +971 (0)2 2344600
Email: senaat@brunswickgroup.com

About Senaat
Senaat is the UAE's largest industrial holding company, managing assets for the Government of Abu Dhabi. Senaat is fully owned by Abu Dhabi Government and has been mandated to create, optimise, promote and champion capital and power intensive assets in the United Arab Emirates. It is a key contributor to Abu Dhabi's Economic Vision 2030 which aims to diversify the Emirate's economy away from its reliance on the hydrocarbon sector by developing a strong industrial capability. Senaat thrives on the development of UAE national human capital through leadership development, job creation and knowledge transfer.

Senaat, which translates as "Industries", manages more than US$7.3 billion (AED26.8 billion) of industrial assets and employs more than 19,500 people. Senaat has invested over US$4.9 billion (AED18 billion) in the non-oil sector since 2004 and its leadership is made up mainly of Emirates 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

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

  • National Petroleum Construction Company (NPCC)

NPCC is a major international contractor providing integrated onshore and offshore oil and gas fabrication, support and Engineering, Procurement and Construction services.

  • Arkan

Arkan specialises in the manufacturing of building and construction products in the UAE.

  • Ducab

Ducab is 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

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

  • Al Foah

Al Foah is the largest date company in the world. It manages the process of packaging, distributing and marketing dates in Abu Dhabi to 44 different countries.

  • Taweelah Aluminium Extrusion Company (TALEX)

TALEX is a joint venture with Gulf Extrusions, an Al Ghurair Group company, and owns and manages the 50,000 metric tonne capacity, state-of-the-art Aluminium Extrusion plant based at Kizad.

  • Al Gharbia Pipe Company

Al Gharbia Pipe Company is a joint venture between Senaat and two of Japan's leading companies in the steel sector, JFE Steel Corporation and Marubeni-Itochu Steel Inc (MISI). It owns and manages the UAE's first sour service capable, welded steel pipe plant based at Kizad with expected capacity of 240,000 tons annually.

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

© Press Release 2015


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