UAE-based Arkan Building Materials Company has registered a net profit of Dh80 million ($21.7 million) in 2014, up 87 per cent compared to Dh43 million ($11.7 million) the previous year.

A large-scale integrated building products manufacturer catering to the local and regional construction industry, Arkan is a portfolio company of Senaat, one of the largest industrial investment and holding companies in the UAE managing industrial assets for the Abu Dhabi government.

The Abu Dhabi company posted solid growth for 2014 with its revenues hitting Dh752 million ($205 million), up 94 per cent compared to Dh387 million ($105.3 million) a year earlier.

Impressed with the results, Arkan has approved a cash dividend of 2.5 per cent for eligible shares at the company’s annual general meeting held last week.

Khaled Mohammed Balama, the company’s vice chairman, who chaired the meeting, said Arkan had successfully restructured its debt, reducing the interest rate over a longer period, matching its cash generation capabilities and reducing its debt burden.

He pointed out that the company's board had taken stringent measures to enhance operations over the past six years, with a particular emphasis on growing sales and optimising operations.

Arkan, he stated, had completed a pipeline of projects aimed at diversifying its product base and launched a series of new initiatives going forward.

The UAE firm’s assets rose nearly six per cent from Dh3.5 billion ($952 million) in 2013 to Dh3.7 billion ($1.07 billion) last year.

“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," stated Balama.

One of the most diversified building products manufacturers in the UAE, Arkan plays a major role in diversifying Abu Dhabi’s economy by developing a strong industrial capability.

In 2014, the company opened a new Dh1.3 billion ($353 million) 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, said Balama.

The factory has a production capacity of 3.1 million tonne of clinker per year and 4.5 million tonne 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, he added.-TradeArabia News Service