|By Arabian Post Staff| Senaat, the industrial investment holding company managing the assets of the Abu Dhabi government, announced marginally lower revenue and profits for 2016.
The Group claimed a solid performance by operating companies, reflecting the resilience of its business model. Revenues of AED 13.4 billion (2015: AED 14.0 billion) were marginally lower compared to the previous year and total EBITDA also declined slightly to AED 1.8 billion. The Group’s performance reflects its disciplined financial strategy and is also testament to the diversified nature of its portfolio.
“Senaat remains self-sufficient and continues to reinvest profits for future growth. In FY 2016, the Group made new investments of nearly AED 1 billion in industrial assets, a reflection of its commitment to the future growth in the Emirate of Abu Dhabi. Total assets for the Group reached AED 27.4 billion in FY 2016, an increase of AED 601 million from the previous year, representing a compounded annual growth rate of 18 per cent since Senaat’s inception in 200,” the group announced.
Commenting on the Group’s performance, Hussain Jasim Al Nowais, Chairman of Senaat, said: “When you have a long-term vision, you have to operate successfully in different market cycles and adapt to the changing environment. 2016 was a year where we continued to show our resilience as a group and also contribute to the diversification of Abu Dhabi’s economy and the realisation of the 2030 Economic Vision for the Emirate.
“We remained focused on delivering the best value to our shareholder by following a prudent financial strategy and investing selectively across the industrial sector. This contributed to a solid financial performance for FY 2016 in spite of global, macro-level challenges. Looking ahead, we will continue to follow a conservative, highly targeted financial approach and look for new ways to develop greater synergies throughout our portfolio. Senaat has laid a solid foundation for future growth and will continue to achieve its overall objective of developing the industrial sector in Abu Dhabi.”
Eng. Jamal Salem Al Dhaheri, CEO of Senaat, added: “The past year was a proof of the importance of having a diversified portfolio with investments in different sectors. While some of our businesses faced challenges endemic to their global industries, others had a highly successful year, such as food and beverages manufacturing which witnessed strong revenue growth, and cables manufacturing which saw an increase in sales volumes. Indeed, the UAE food and beverage market is expected to continue to grow to more than US$13.2 billion by 2018.”
“Our portfolio companies in the metals, building materials and oil and gas services sectors are successfully combating adverse market conditions through innovating new products and exploring new markets. Despite the market cycle we are in, our portfolio remains strong, and our financial position is solid as we progress into the new year. I remain highly confident in the future potential of our group companies as we continue to pursue this proven strategy.”
FY 2016 also saw significant progress in major projects for the Group, including the April 2016 ground-breaking of the Al Gharbia Pipe Company plant, a joint venture between Senaat and Japanese partners JFE Steel Corporation and Marubeni-Itochu Steel Inc. The facility will be the first sour service capable, welded steel pipe plant in the UAE, and will have an expected production capacity of 240,000 tonnes annually.
Additionally, Senaat made strong progress in creating opportunities for UAE nationals, a priority for the Group. In 2016, Senaat reported that 100 per cent of senior leadership positions were held by UAE nationals, with an Emiratisation rate of 67 per cent at the holding company level.