Arkan strives to play a key role in Abu Dhabi Government diversification drive to deliver the 2030 vision.
Arkan AGM Approves Cash Dividend of AED 44 million
- Net profit up 87 percent to AED 80.01 million, on revenues of AED 751.80 million, up 94 percent
- New initiatives, including new Al Ain Cement Factory contribute significantly to strong performance
- New directors join board
4 May 2015, Abu Dhabi, UAE – Arkan Building Materials Co. PJSC (ADX: ARKAN), a public joint stock company based in Abu Dhabi specialised in the manufacture of building and construction products in the UAE, has approved a cash dividend of 2.5 percent for eligible shares at the Company’s Annual General Meeting held on Wednesday.
The meeting was chaired by Khaled Mohammed Balama, the Company’s Vice Chairman, who recognised Arkan’s numerous accomplishments. He began his address to shareholders by acknowledging the important contributions of the late Eng. Suhail Mubarak Bin Athaeeth Al Ameri, former Chairman of Arkan and former Chief Executive Officer of Senaat, who passed away on 23rd March of this year.
“Our nation has lost one of its loyal and sincere men, who devoted his life to serve his nation and its citizens with hard work and dedication,” Mr. Balama said of the late Mr. Al Ameri.
In 2014, Arkan achieved a net profit of AED 80 million compared to AED 43 million in 2013, representing an increase of 87 percent. Revenues reached AED 752 million in 2014 versus AED 387 million in 2013.
Mr. Balama noted that Arkan’s Board of Directors had taken stringent measures to enhance operations over the past six years, with a particular emphasis on growing sales and optimising operations. The Company also completed a pipeline of projects aimed at diversifying its product base and launched a series of new initiatives going forward.
He added that the Company had successfully restructured its debt, reducing the interest rate over a longer period, matching its cash generation capabilities and reducing its debt burden.
Arkan’s assets were valued at AED 3.7 billion in 2014, compared to AED 3.5 billion in 2013 – an increase of nearly six percent – and shareholder equity rose from AED 1.70 billion in 2013 to AED 1.79 billion in 2014.
“The Company’s increased and consistent profitability over the past several years has helped Arkan to wipe out the losses it incurred in 2008 and 2009, at the onset of the global economic crisis,” Mr. Balama said.
Arkan is a large-scale integrated building products manufacturer catering to the local and regional construction industry. It is a portfolio company of Senaat, one of the largest industrial investment and holding companies in the UAE managing industrial assets for the Government of Abu Dhabi.
Established in 2005 to focus on building a large integrated building products business catering to the local and regional construction industries, Arkan is one of the most diversified building products manufacturers in the UAE. It plays a major role in diversifying Abu Dhabi’s economy by developing a strong industrial capability.
In 2014, Arkan inaugurated a new AED 1.3 billion cement manufacturing facility in Al Ain, positioning the Company for future growth in light of the continued expansion in the region’s infrastructure and construction sectors. The factory has a production capacity of 3.1 million tons of clinker per year and 4.5 million tons of cement, significantly augmenting the UAE’s total capacity. Arkan has also completed the construction of a Dry Mortar Plant, currently being commissioned, that will add further capacity.
In 2014, Arkan also unveiled a new corporate brand identity reflecting its commitment to achieving its vision.
During the AGM, shareholders elected the following new board members, comprising:
- H.E. Eng. Jamal Salem Al Dhaheri
- H.E. Jassem Saleh Busaibe
- H.E. Eng. Tariq Ahmed Al Wahedi
- H.E. Eng. Ahmed Suhail Al Muhairi
- H.E. Eng. Aqeel Abdullah Madhi
- H.E. Khalifa Saif Darwish Al Ketbi.
- H.E. Mohammed Ali Abbas Al Fahim
Mr. Balama concluded the meeting by thanking the leadership of Abu Dhabi, represented by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, and His Highness General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, for their unwavering support for the national industrial sector and its companies. Mr. Balama also extended his thanks to Arkan’s Board of Directors, executive management team and employees, as well as the company’s shareholders and other valuable stakeholders for their continued confidence in the company.