Further advances market share in the highly competitive UAE home market
Dubai 23rd April 2013: Ducab—one of the region's largest manufacturers of high-quality power cables and copper products in the Middle East—has announced impressive results for 2012 today (April 23, 2013) during a press conference held in Dubai. Key areas of growth in 2012 included 24% higher sales to the Oil, Gas and Petrochemical sector and an increase of 42% in cable exports including a 72% increase in International markets. Ducab revenues of Dhs4.2bn were lower than the previous year turnover despite a small increase in cable volumes. This was due to a 10% drop in copper prices over the same period coupled with the change in product mix.
Commenting on the results, Chairman of Ducab, Eng. Jamal Al Dhaheri said: “Our success in 2012 was the result of successful expansions in new markets and introduction of new products coupled with tight financial control. We have ventured into new sectors and markets across various territories. Ducab increased market share in the core market of UAE despite increasingly difficult market conditions in 2012. Ducab's traditional strength in the home market was reinforced with innovative promotions to support the distribution chain.
Mr Al Dhaheri added, “Ducab remains financially strong and has reduced borrowings by AED 198mn during the year. The core business profitability was up 10% from the previous year and the Board agreed to increase dividend to our shareholders by 25%.
Another highlight was the first full year of operation of Ducab HV, the Dh500m high voltage cable plant that opened during the previous financial year. In addition to supplying high voltage cables to both its utility partners, ADWEA and DEWA, Ducab HV was also successful in winning its first major export order for MEW Kuwait valued at AED62M. This export success was achieved two years ahead of the target set in the original business plan. Ducab HV also successfully completed 132,000V system type tests in its own extra-high voltage test facilities under the close scrutiny of the utility specialists and independent third party expert witnesses.
The results of 2012 were achieved in large part to an increase in sales to export markets, which helped to offset the softer levels of demand seen from Ducab's home market. Ducab's cables and copper products are currently sold in over 40 countries worldwide across the Middle East, Europe, Africa, and Far East. Approximately 55% of Ducab's total sales are made outside the UAE market, as Ducab looks to penetrate new high growth markets in Africa and Asia.
Mr Al Dhaheri noted that Ducab has continued to invest and develop the business through the recent downturn and proudly announced that Ducab will shortly start production of Rubber Cables at its
Musaffah Abu Dhabi factory. These cables are used in specialised industrial applications and it is believed that Ducab will be the first company to manufacture them in the MENA Region.
“Ducab continues to leverage its strengths in customer service and product quality to develop new products and markets, driven by a strong belief that such commitment will continue to further increase the sale of Ducab cables and allied products across the region,” the Chairman concluded.
Ducab has a wider responsibility in the UAE and earlier this week launched a fire safety awareness campaign in partnership with the Directorate General of Civil Defence. The road-show display will tour Dubai and Abu Dhabi educating end-users and installers on the dangers of substandard cabling. Specialist cables like LPCB-approved Ducab FlamBICC fire resistant cables and the Tuff DuFlex 105degrees Centigrade BASEC approved flexible cords are just a few examples of how seriously Ducab addresses the issues of fire safety and the impact of high quality products on human life.
National Development is a key priority for Ducab and a new initiative was started in 2012 with the start of a new graduate recruitment scheme. Ducab will recruit and train 15, mainly technical, graduates per year to develop Ducab's leaders of the future. Emiratis already occupy 22% of Ducab's white collar positions.
Ducab also participated in major events including Dubai Global Energy Forum, WETEX, Middle East Electricity Exhibition, and the 2nd Annual Middle East Fire Safe Conference 2012, where it showcased the entire FlamBICC fire performance range of cables and wires in addition to its range of HV, MV & LV cables, Ducab Smokemaster LSZH, Instrumentation and Pilot cables, Control and Auxiliary cables, Wiring cables and Lead-sheathed cables for the oil, gas and petrochemical sector in addition to the Ducab Connect range of joints and terminations.