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Abu Dhabi, UAEWednesday 23 May 2018

Senaat says investments pay off as 2015 revenue tops Dh14 billion

The Senaat chairman Hussain Al Nowais said that investments made in businesses such as Al Gharbia Pipe Company meant growth should continue.

Senaat has about Dh26.8 billion worth of industrial assets under management. Sammy Dallal / The National
Senaat has about Dh26.8 billion worth of industrial assets under management. Sammy Dallal / The National

Senaat, the Abu Dhabi government-owned industrial holding group, said it was “well-positioned for future growth” after revenue increased by 5 per cent last year to Dh14.04 billion.

The group also said its earnings before interest, tax, depreciation and amortisation were maintained at Dh2bn.

The Senaat chairman Hussain Al Nowais said that investments made in businesses such as Al Gharbia Pipe Company meant growth should continue.

The company did not supply a net profit or loss figure for last year. In 2014, the company declared a net profit of Dh923m.

A company representative contacted by The National was not able to provide the figure for 2015.

Senaat was set up to diversify Abu Dhabi’s economy by broadening the industrial sector, and it is the parent company behind major businesses including Emirates Steel, the cables company Ducab, Arkan Building Materials, the contracting business National Petroleum Construction Company and the food and beverage company Agthia.

Senaat has about Dh26.8bn worth of industrial assets under management and employs some 19,500 people.

Senaat last year launched Al Gharbia Pipe, a Dh1bn joint venture with Japan’s JFE Steel and Marubeni-Itochi Steel. It will produce large steel pipes for the oil and gas sector at a plant in the Khalifa Industrial Zone Abu Dhabi, set to open in 2018.

Emirates Steel in particular faced tough market conditions as global steel prices fell from US$620 per tonne in January 2015 to $453 per tonne by December. The drop has been blamed on a big increase in capacity in China at a time when demand has slowed.

China’s share of the global steel trade has increased from 10 per cent to 50 per cent over the past decade.

“Despite current economic challenges in the wider GCC region, our strategy of diversification and contribution to Abu Dhabi’s industrial sector is delivering results,” Mr Al Nowais said. “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.”

mfahy@thenational.ae

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