Earnings growth of 20% to top AED 2.5 billion
Abu Dhabi, UAE, 24 March 2019: SENAAT (“SENAAT” or “the Group”), one of the largest industrial investment holding companies in the UAE, today announced financial results for 2018 demonstrating year-on-year growth and improved profitability.
SENAAT achieved steady revenue growth in 2018 to reach AED 16.3 billion, a 3.5% increase over the previous year (2017 revenue: AED 15.7 billion). More notably, EBITDA increased to more than AED 2.5 billion in 2018, a 20% increase compared to 2017, reflecting margin enhancement realised by capitalising on market opportunities and through cost control initiatives implemented across the Group.
These outstanding results complement the sustained growth in the company's industrial assets portfolio which reached AED 27.3 billion at the end of 2018, representing a compounded annual growth rate of 15.5% 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 successfully issued a AED 1.1 billion (US$300 million) sukuk with a 7-year tenor dual listed on the London Stock Exchange and Abu Dhabi Securities Exchange. The new sukuk had strong investor demand both locally and internationally, enabling the issue to be 8.7 times oversubscribed. The sukuk was competitively priced, with a fixed rate of 4.76% per year, underpinned by investment grade ratings of “A3” by Moody's and “A” by Fitch. These ratings are the first to be assigned to SENAAT by Moody's and Fitch and have also been assigned to the sukuk itself.
H.E Dr. Mohamed Rashed Al Hameli, Chairman of SENAAT, applauded the strong financial results for last year and said: 'In 2018, SENAAT has continued to successfully deliver towards supporting Abu Dhabi Economic Vision 2030. The company has played a significant role in progressing Abu Dhabi's vision to diversify economic resources and reduce dependence on the oil and gas sector by developing a solid industrial base that enables SENAAT to compete globally. One of the main strategic objectives of SENAAT is to support the social and economic development of Abu Dhabi by spearheading industrial investments that will achieve long-term, sustainable returns, as well as to develop human capital.'
H.E added: 'These strong 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 are proud of the company's remarkable achievements in its different sectors and we look forward to continuing this growth and capitalising on investment opportunities to maximise shareholder value.
“Finally, I would like to point out that the efforts of our former chairman H.E. Hussain Jasim Al Nowais enabled SENAAT to deliver this strong performance. Under his wise stewardship, SENAAT has grown to become a highly successful business that plays a key role in developing the UAE's industrial base. We must also recognise the contribution of our former vice-chairman H.E. Saif Mohamed Al Hajeri, who has served the company with great distinction for a number of years. On behalf of the Board, I thank them both and wish them every success in the future.'
Eng. Jamal Salem Al Dhaheri, CEO of SENAAT, said: 'SENAAT has once again delivered solid financial performance, which demonstrates its ability to deliver stable returns for our shareholder. We must also remember the efforts of all our portfolio companies, whose management teams and staff deserve great credit for their contributions. We look forward to building on this growth trajectory and expanding our businesses. Over the past few years, we have been able to achieve outstanding results, supported by our strong efforts to develop SENAAT and consolidate its position as one of the UAE's leading diversified industrial groups. We have been able to successfully fund investments, as well as build strategic partnerships, that will further strengthen and grow SENAAT's industrial portfolio.'
Following a strategic plan to support and promote the national Emiratisation program at SENAAT and across the industrial sector, SENAAT has achieved an outstanding Emiratisation rate of 66 per cent, and 75 per cent nationalisation at leadership positions. In 2018, SENAAT successfully placed 161 Emirati employees throughout the group, while retaining a significant portion of 1,367 Emiratis in the same period. By 2020, SENAAT aims to recruit 396 Emiratis across the group, to achieve 23 per cent Emiratisation of its total workforce.