ABU DHABI, Senaat, one of the leading industrial investment holding companies in the UAE, announced on Tuesday a 16 percent increase in operating earnings in 2017 compared to 2016.

The Abu Dhabi-based group said its earnings before interest, tax, depreciation and amortisation (Ebitda) rose to AED2.1 billion from AED1.8 billion a year earlier as revenues surged 18 percent to AED16 billion in 2017 from AED13.4 billion in 2016. The group's assets recorded a compounded annual growth rate of 18.3 percent since inception in 2004 to AED27.2 billion at year-end.

Hussain Jasim Al Nowais, chairman of Senaat, said the positive performance reflects the competitiveness of the company and its ability to withstand challenges.

In 2017, the holding company, which manages entities such as Emirates Steel and National Petroleum and Construction Company, had invested AED1.2 billion in assets. "The company continues to self-finance its growth and reinvesting profits to further develop its asset base. This reflects the company's leading role in developing the industrial sector in Abu Dhabi and the UAE and its long-standing commitment to contribute to Abu Dhabi's Economic Vision 2030," said Al Nowais.

He said the growth also underscored the group's resilient, strong business fundamentals and proficiency of management teams to achieve operational efficiencies. "The group's strategy aims to achieve sustainable growth and increase shareholder value, by remaining competitive in all of our sectors."

Jamal Salem Al Dhaheri, CEO of Senaat, said the diversified nature of the group portfolio is one of the main factors that supported it to deliver an excellent overall performance during the past few years. "It is also an evidence that the diversified portfolio is a significant component for the company to face the economic fluctuations arising in the sector."

"Our overall strategy is to promote efficiency and innovation to control production costs that have been increased due to various global industry challenges," said Al Dhaheri.

The portfolio companies demonstrated their ability to achieve efficiencies, create innovative solutions and develop skills for the continuously changing market. "This helped to increase productivity and lower costs. In addition, the portfolio companies expanded into new markets and introduced products with added value, catering to the demands of our international customers," said Al Dhaheri.

Source: Emirates News Agency