Ducab Group announces profitable H1 2020 despite COVID-19
Ducab Group has announced that overall profitability for the first six months of 2020 has been maintained as compared to same period last year, due to the resilience of its diversified cables and metals business with all manufacturing based in the UAE.
Commenting on the company’s performance, Dr. Ahmad Bin Hassan Al Shaikh, Chairman of Ducab, said: "The current COVID-19 pandemic has tested businesses around the world including the manufacturing sector. Resilience and business continuity have been the cornerstones of Ducab’s strategy, supported by strong supply chain partners and the deep commitment from each member of the team. Ducab cables and metals businesses have thus remained profitable during an extremely challenging time. All of this has been possible while upholding stringent health and safety standards, ensuring that customer service remains unimpeded. Prudent financial management and effective cost control measures across all business areas enabled the group to partially offset the effects of margin pressures. Moreover, strong cash flows allowed debt levels to reduce in the core business, a result of which Ducab has brought down the total borrowings by an impressive 43% compared to the levels in H1 2019."
Jointly owned by ADQ (through Senaat) and ICD, with six manufacturing facilities across four sites in the UAE, today Ducab group has a manufacturing capability of over 115,000 metal tonnes of high, medium, and low-voltage cable solutions, an upgraded production capacity of 180,000 tonnes of copper rod and wire per annum, complemented by 55,000 tonnes per annum of aluminium rod and overhead conductor.
Ducab Cable Business, the largest part of the group, delivered a flat sales volume of just under 40,000 MT of conductors vis-a-vis last year and with the operations running uninterrupted during the pandemic, DCB continued to supply cables and accessories to customers in over 22 export markets. UAE being the home market, consumed the largest share of the cable and wire production with demand from Utilities, building construction industry and Oil and Gas sector fared better than expectation.
During the first six months of 2020, Ducab High Voltage (DHV) cable systems set a new H1 volume record by delivering 25% more kms of HV cables as compared to the same period last year. Highlights included successful installation activities associated with a 220kV cable order to Abu Dhabi National Oil Company (ADNOC) whilst supervising the one-year pre-qualification test in a European-based test laboratory.
External sales of copper rods from Ducab Metal Business (DMB) grew by over 15% in H1 of the current year. Ducab Aluminium Company (DAC), also posted an impressive performance, having increased its supply of aluminium rods and overhead conductors to global customers by more than 2%, compared to the same period last year, keeping the Abu Dhabi based plant running flat out as a result of this demand.
Ducab group continues to export 60% of its overall rod, wire, and cable production around the world. A diversified customer base, matched with the ability to reach new regions, was a fundamental contributor to the company’s impressive H1 results.
"We fully understand that the global COVID-19 pandemic is unprecedented and has impacted significantly on businesses and our communities. Ducab’s sales and operations teams have offered tremendous support to maintain the supply of cables to various project sites of ours in the UAE without any manufacturing delays during the COVID-19 pandemic," noted spokesperson from Samsung Engineering Abu Dhabi..
"Our colleagues both in offices and factories have been excellent in adapting to the new normal in a very short period of time. Taking an early, prevention-based approach to ensuring employee wellbeing was critical. Their incredible performance has meant that we have been able to continue to meet our customers’ expectations with minimal disruptions, for which I cannot thank them enough," added Dr. Al Shaikh.
"Moreover, on behalf of everyone at Ducab, I express my utmost thanks to the leaders of the UAE for the robust measures implemented to keep our communities safe during the COVID-19 pandemic."
News Source : http://wam.ae/en/details/1395302861872