(MENAFN-Khaleej Times) Dubai Aluminium, known as Dubal, on Monday declared a 13 per cent increase in its net profit for 2013 despite a three per cent decline in sales revenue
Shaikh Hamdan bin Rashid Al Maktoum chairing the Dubal meeting. — Wam
The state-run company’s net profit jumped to Dh1.79 billion compared to Dh1.58 billion in 2012. While sales came down to Dh9.5 billion in 2013 over Dh9.77 billion reported in previous year.
“Dubal’s leading position is further affirmed by compound annual revenue and profit growth rates from 1996 to 2013 of 10.3 per cent and 6.9 per cent respectively,” said Shaikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance.
Dubal results were revealed during the company’s General Assembly Meeting for 2013. Dubal’s achievements in 2013 reflect a combination of higher production and sales volumes, coupled with sustained focus on controlling the cash conversion cost, the latter despite increasing pressure on the purchase prices of raw materials, the company said in a statement.
Dubal’s net profit includes the company’s share in the profits of Emirates Aluminium (Emal), which amounted to Dh55 million in 2013 during its second full year of production. Dubal’s balance sheet further improved through repayment of long-term loans mainly enabled by a healthy operational profit and continued control of working capital.
Widely acknowledged as the UAE’s industrial flagship, Dubal began operating in 1979 with an initial production capacity of 135,000 tonnes per year. The company has since undergone a series of major expansion projects, together increasing the production capacity of Dubal’s Jebel Ali plant more than seven-fold to more than one million tonnes per year. The use of advanced in-house developed technologies that offer improved productivity and other operating benefits, together with higher amperage levels and efficiency improvements, enabled Dubal to produce 1,034,766 tonnes of hot metal in 2013.
This marked the fourth consecutive year that Dubal has surpassed the one million tonne hot metal milestone, and also represented growth on the 1,025,266 tonnes produced in 2012. Going forward, ever-higher hot metal production is expected each year, driven by further productivity gains.
Moreover, both cast product and sales volumes exceeded one million tonnes for the fourth consecutive year, with Dubal selling more metal in 2013 than in 2012. These statistics highlight the company’s ranking as a major supplier of premium quality, highest purity aluminium to the global market, especially as about 87 per cent of Dubal’s annual production is exported to more than 325 customers in at least 60 countries in various parts of the world.
In terms of foreign investments to secure raw material stocks, good progress was made during 2013. Dubal is currently engaged in diverse strategic upstream bauxite/alumina projects that are in various stages of development.
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