03 April 2016Increase driven by strong performance across portfolio companies
Abu Dhabi, UAE: Senaat General Holding Corporation ("Senaat" or "the Group"), a leading industrial holding company in Abu Dhabi, announces its financial results for the full year ended 31 December 2015 ("FY 2015").
The Group recorded a strong performance for the year, realising revenues of approximately AED 14.04 billion for FY 2015, a 5 per cent increase from the AED 13.42 billion in revenues achieved in FY 2014. The increase in revenues reflects a stronger commercial performance across the Group's portfolio despite the slowing global economy and its effect on the regional and local markets. The Group also succeeded in maintaining its EBITDA at approximately AED 2 billion for FY 2015.
Senaat's operational portfolio companies, which contributed to the Group's financial performance include Al Foah, Arkan, Agthia, Ducab, Emirates Steel and NPCC. Senaat's portfolio also include three companies, Talex, Al Gharbia Pipes Company and Ducab Aluminium Company, which are all currently under development. Once fully operational, the three companies are expected to contribute to the aggregate top-line results for the Group.
Commenting on the results, Senaat Chairman, H.E. Hussain Jasim Al Nowais, said, "FY 2015 marked a year of strong top-line growth for Senaat and its portfolio companies. Despite current economic challenges in the wider GCC region, our strategy of diversification and contribution to Abu Dhabi's industrial sector is delivering results, as evident in the financial success across our portfolio of companies.
"Senaat has succeeded in establishing industrial leaders with significant competitive capabilities in different sectors such as building materials, oil and gas services, metals and food and beverage business."
Senaat as many other regional players in the industrial sector has and is facing regional and global economic challenges. This is more evident in the metals sector in the UAE where global competitors have been dumping products over the last year. However, thanks to adopting a smart and flexible strategy focused on diversification and opportunistic investment, Senaat was able to reduce the negative impact of the economy and achieve strong performance in 2015.
H.E. Al Nowais said: "These results are the outcome of our long-term strategy centered on contributing sustainably to the development of the industrial sector in Abu Dhabi. We will continue to establish industrial entities that will add to Abu Dhabi's efforts to diversify away from hydrocarbon industries."
In 2015, Senaat launched the Al Gharbia Pipe Company, a joint venture with JFE Steel Corporation and Marubeni-Itochu Steel Inc. Al Gharbia will create the UAE's first large-diameter, sour service capable, welded steel pipe project. The facility is expected to be operational in 2018 and will further enhance the Group's capacity in the industrial sector and contribute to its revenues on a long-term basis.
H.E. Al Nowais continued; "Through strategic investments and the development of these portfolio companies, and a committed and highly involved senior management team, Senaat is well positioned for future growth. Senaat currently manages more than AED 26.8 billion of industrial assets on behalf of the Government of Abu Dhabi. Looking ahead to 2016, we will continue to implement strategies across our Group to optimise results, and allow us to adapt to the changing global economic environment."
To mitigate risk, Senaat has worked to develop a diverse portfolio of companies with interests across multiple industrial sectors, each contributing to the Group's overall performance for the past fiscal year. Looking ahead, the Group will continue to retain its competitive edge and market position through developing value-add and niche products and to reduce the impact of challenging market conditions.
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 has invested in the non-oil sector an average of AED1.9 billion a year over the last 10 years. Senaat employs more than 19,500 people in its portfolio companies and its leadership is made up mainly of Emirates nationals.
Its subsidiary 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 is the only integrated steel producer in the UAE and one of the largest integrated steel producers in the GCC.
NPCC is a major international contractor providing integrated onshore and offshore oil and gas fabrication, support and Engineering, Procurement and Construction services.
Arkan specialises in the manufacturing of building and construction products in the UAE.
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 is one of the UAE's leading food and beverage groups with assets across the Middle East, North Africa and Turkey.
Al Foah is the largest date company in the world. It manages the process of packaging, distributing and marketing dates in Abu Dhabi to 48 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 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.
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© Press Release 2016