- Net profit up 14% year on year on revenues of AED 11.5 billion – five-fold increase since 2004
- Emiratization levels increased to 25% from 21% in 2010
- Al Nowais: We are a strong contributor to the diversification of the local economy through the development of the industrial sector, in line with Abu Dhabi’s Vision 2030
- Al Ameri: We have successfully executed our strategy with our investments yielding considerable operational and financial achievements
- Since 2009, the company’s assets have grown 30% to reach AED 23.7 billion in 2011
The General Holding Corporation’s (GHC) net profits increased in 2011 to AED 1.5 billion (2010: AED 1.3 billion) with revenues rising 16% in the corresponding period. Net profits increased 32% compared to the same period in 2009. Company revenues grew to AED 11.5 billion during 2011 compared to AED 9.9 billion the year before, a 33% increase since 2009.
The financial performance of GHC, one of the largest industrial investment and holding companies in the UAE, highlighted the positive progress made over the past three years and demonstrates the Company’s high degree of efficiency in managing its investment activities.
H.E. Hussain Jasim Al Nowais, Chairman of GHC said today during a press conference to announce the group’s financial results: “The Company grew its total assets over the past 3 years to AED 23.7 billion at the end of 2011 compared to AED 21.6 billion at the end of 2010. This represents a 30% increase in assets which stood at AED 18.2 billion at the end of 2009.”
Al Nowais highlighted the progress of the Company’s investments and portfolio with total industrial investments of AED 2.7 billion last year compared to AED 2.5 billion in the same period the year before.
Al Nowais underlined the group’s stability and strong financial position: “The Company continues to generate strong cash flows from operating activities enabling the self-funding of its industrial investments and the maintenance of a balanced leverage policy. The Debt to Equity ratio in 2011 was .92x compared to .95x in 2010.”
Al Nowais emphasized GHC’s leading role in the development of the industrial sector in Abu Dhabi, in line with the Abu Dhabi Vision 2030, via its strategy of value added investments and commitment to job creation including attracting and developing national talent. Last year, the Company reached Emiratization levels of 25% compared to 21% in 2010 and it now has a total workforce of more than 18,000.
Al Nowais said: “The Company is a leader in the industrial diversification of the economy of Abu Dhabi through new investments, establishing, developing and acquiring industrial companies and projects.”
Eng. Suhail Al Ameri, Chief Executive Officer (CEO) of GHC, said: “The Company is a major player in helping to execute Abu Dhabi’s diversification strategy to establish and develop its industrial sector.”
“GHC has successfully implemented its strategy including the management of its investment portfolio; the creation of Private Public Partnerships (PPP); the privatization of assets as well as direct investments. This has been demonstrated across the group including at National Petroleum Construction Company (NPCC) which is a very successful example of a PPP.” Al Ameri said.
Al Ameri said: “We have also had two very successful privatizations of Agthia and Arkan Building Materials Co. which are both leading companies in their respective sectors.”
The Company’s direct investments include developing Emirates Steel (ES) which has become one of the biggest steel producers in the region, Al Ameri said.
2011 also saw a number of major operational developments and achievements for GHC including at Emirates Steel (ES), the largest integrated steel manufacturer in the UAE, where the commissioning of Phase II (A) takes the project’s total capacity to more than 2 million tonnes and the overall investment to date to approximately AED 10 billion, Al Ameri said.
Al Ameri said that Ducab, the technologically advanced cable manufacturing company, has inaugurated and commissioned a AED 500 million high/extra high voltage plant which will further serve the utilities market both in the UAE and abroad.
Al Ameri said: “National Petroleum Construction Company (NPCC), the international EPC company for the oil and gas sector, continues to increase its business in the Asian market, executing a number of large projects awarded over the last two years in India worth a total of more than AED 1.4 Billion.”
Al Ameri also highlighted that Agthia, the leading Abu Dhabi based Food and Beverage group, in December 2011 acquired a Turkey-based natural spring water bottling plant with direct access to a natural spring water source, which will enable it to enter the higher-margin premium natural spring drinking water market in the UAE and the wider region.
GHC owns a portfolio of companies and factories including Emirates Steel (ES), National Petroleum Construction Company (NPCC), Ducab, Arkan Building Materials, Agthia, Al Foah dates processing company, Al Khaznah Tannery and global logistics provider DAMCO Abu Dhabi.