Ducab's profits soar on construction and hydrocarbon sectors

Ducab, the UAE-based cables producer, has seen its profits surge on the back of increased sales into Abu Dhabi's construction and hydrocarbon sectors.

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Ducab, the UAE-based cables producer, has seen its profits surge on the back of increased sales into the Abu Dhabi construction and hydrocarbon sectors.

The company increased its sales by 39 per cent to Dh4.9 billion in 2011. Operating profits from the underlying business doubled, said Ducab, without revealing numbers.

Revenue from the Abu Dhabi construction sector rose by half, with the emirate last year accounting for 60 per cent of sales into the construction sector, according to Andrew Shaw, Ducab’s managing director.

"Last year was the first year that our sales invoiced to AD exceeded our sales invoiced to Dubai," said Mr Shaw.

Sales to the oil, gas and petrochemicals sector grew by 250 per cent, as Ducab supplied cabling to key Abu Dhabi projects such as the gas processing facilities in Habshan, the refinery in Ruwais, and the Borouge petrochemical complex in the same location.

High oil prices spurred investment in the hydrocarbon sector, and the company was able to meet rising demand with its speciality cable factory that had been built three years earlier in an effort to diversify away supplying the construction and utilities sector.

Instrumentation and control cables supplied to the hydrocarbon sector now accounts for about 15 per cent of sales and a higher proportion of profit.

"This year the growth has been driven both by growth of demand and the fact we have this special cables unit in full operation,"said Mr Shaw.