ABU DHABI / WAM
Senaat on Sunday announced that it has achieved steady revenue growth in 2018 to reach AED16.3 billion, a 3.5% increase over the previous year (2017 revenue: AED15.7 billion). More notably, EBITDA increased to more than AED2.5 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 AED27.3 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 an AED1.1 billion ($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.
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.”
He added, “These strong financial results reflect the resilience of Sen-aat ’s business model, and its adaptability and sustainability in the face of volatile and challenging market conditions.”