Senaat revenue up 3.5% at Dh16.3B
Further expansion in plans; mergers, acquisitions being eyed
Senaat, one of the largest industrial holding companies in the UAE, posted 3.5 per cent rise in revenues to Dh16.3 billion and 20 per cent growth in earnings to over Dh2.5 billion in 2018.
Senaat, managing assets for the Abu Dhabi government, is an industrial conglomerate of nine companies across four sectors of metals, oil and gas, services, construction and building materials, and food and beverages manufacturing.
Announcing the financial results, Senaat CEO Jamal Salem Al Dhaheri said a steady year-on-year growth (Dh15.7 billion in 2017) was achieved by capitalising on market opportunities and through cost control initiatives and innovation. "This applies to all of the four sectors and all the companies. We have to make sure that we have the lowest cost structure," Al Dhaheri said during a media interaction.
"There are lots of developments in terms of technology, the ways we best procure our raw materials and there are lots of new suppliers and service providers." Senaat, Al Dhaheri said, focuses on enhancing customer service through value addition in the product mix. "There are lots of research and development initiatives. This will help to differentiate among other players."
M&As, further expansion plans
Al Dhaheri said Senaat has huge growth aspirations and looks to mergers and acquisitions.
The group, he said, will continue to expand and grow sustainably. "We cannot rely on a single market because there isn't much demand that will absorb our capacity," he said and cited example of Al Foah, which manages process of packaging, distribution and marketing dates in Abu Dhabi to 48 countries.
Apart from Al Foah, Senaat's portfolio of companies includes National Petroleum Construction Company, Emirates Steel, Talex, Al Gharbia Pipe Company, Arkan, Ducab and Agthia.
He said the financial results show Senaat's ability to deliver stable returns for the shareholder.
"We have been able to successfully fund investments and build strategic partnerships that will further strengthen and grow Senaat's industrial portfolio."
The company's industrial assets portfolio has reached Dh27.3 billion at the end of 2018, representing a compounded annual growth rate of 15.5 per cent since Senaat's inception in 2004. The company continues to invest to develop assets, increasing Senaat's contribution to Abu Dhabi's industrial asset base. In the last quarter of 2018, Senaat issued Dh1.1 billion sukuk with a seven-year tenor dual listed on the London Stock Exchange and Abu Dhabi Securities Exchange. With strong investor demand, the issue was 8.7 times oversubscribed.
Senaat chairman Dr Mohamed Rashed Al Hameli said the group continues to deliver towards supporting Abu Dhabi Economic Vision 2030.
"The company has played significant role in diversifying economic resources and reduce dependence on the oil and gas sector by developing a solid industrial base that enables Senaat to compete globally. These financial results reflect the resilience of Senaat's business model, and its adaptability and sustainability in the face of volatile and challenging market conditions. We look forward to continuing this growth and capitalising on investment opportunities to maximise shareholder value," Al Hameli added.
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