Ducab, manufacturer of power cables in the Middle East, saw sales of US$660mn for the first 6 months of 2011 ? a 50 per cent increase on last year and jump in volume growth by 13.5 per cent.
Cables sales were the biggest earners bringing in US$380mn, and copper products, Ducab's newest product line, accounted for the balance. The sales growth was driven by strong sales in all GCC markets with the UAE, and especially Abu Dhabi, providing significant growth.
"We are pleased with the results although market conditions remain very competitive and pricing still has a long way to go before margins are restored to reasonable levels. We are optimistic that these volumes are yet another positive sign that the UAE and regional economies are recovering", said Andrew Shaw, Managing Director, Ducab.
Despite continued high copper prices affecting working capital, Ducab's cash flow remained positive in the period with the company repaying US$82.9 million of loans, compared to US$20mn in the previous year.
Looking towards the second half of the year, Ducab is working to complete the final commissioning of the US$137.2mn HV plant which is a joint venture with DEWA and ADWEA. The new plant extends Ducab's product range into the Extra High Voltage cable segment - manufacturing cable systems up to 400kv. First sales are expected in the second half of the year.