UAE shipping venture posts profits for 2003
Net profits at Combined Cargo UAE (CCU), the Abu Dhabi-based ship investment joint venture set up by UAE Offsets Group (UOG) in late 1997, went up by 124 per cent to Dh23.38 million ($6.37 million) in 2003 from Dh10.42 million ($2.84 million) in the previous year.
The strong performance was due to extremely high rates for dry bulk transportation that pushed up CCU's total revenues by 31 per cent to Dh103.63 million ($28.23 million) from Dh79.33 million ($21.61 million) in 2002, according to a report in the latest issue of the UAE Offsets Group news.
CCU's dry bulk operations include the transportation of aggregates from the United Arab Emirates to other AGCC countries, transloading iron ore from large capesize vessels to steel mills in the Arabian Gulf and servicing the regional aluminium industry.
During 2003, the bulletin said the CCU went through a change in its shareholding structure and became a 100 per cent local company.
The Oslo-based Torvald Klaveness Group is no longer a shareholder in CCU. The company is now owned 34.2 per cent by Oman Emirates Investment Holding Company (OEIHC) and 32.9 per cent each by Abu Dhabi Investment Company (ADIC) and General Investments FZE.
To diversify its operations, CCU has set up a ship and contract management joint venture with Klaveness. The new firm, Bulktransfer Inc, is owned 36.15 per cent by CCU and 63.85 per cent by Klaveness. It is responsible for the operation of three specialised panamax vessels that are servicing dry bulk transportation and transloading contracts with customers in the Arabian Gulf. CCU has direct or indirect ownership of five vessels.
The company's customers include Saudi Iron and Steel Company, Gulf Industrial Investment Company, Qatar Steel Company (Qasco), Khouzestan Steel, Support PLC, Al Ahmadani Contracting and Aluminium Bahrain (Alba). (menareport.com)
© 2004 Mena Report (www.menareport.com)