2023-08-01 15:44:03
Emirates Arkan Steel announced today that it achieved strong financial results during the first half of 2023. The results of the first half of 2023 revealed the resilience of the group’s steel unit business in the face of market turmoil, as well as the continuous improvement in the revenues and profits of the building materials unit.
EBITDA for the period was AED 612 million, up 3% over the first half of 2022, and up 6% over the second half of 2022 as a result of enhanced efficiency levels across the group.
The EBITDA margin was 13.8%, compared to 12.9% in the first half of 2022.
The group’s revenues for the first half of 2023 amounted to 4.43 billion dirhams, compared to 4.61 billion dirhams during the same period in 2022. In light of the global gap between supply and demand, which led to a temporary increase in the sales prices of the group’s products during the first half of 2022, the group’s revenues The first half of this year is excellent.
The total revenues of the steel unit business amounted to 3.95 billion dirhams during the first half of 2023, and the profits of this unit amounted to 224.8 million dirhams.
Revenues from the building materials unit amounted to 475.8 million dirhams during the first half of 2023, an increase of 9% year-on-year. The profit of the unit amounted to 56 million dirhams, a significant increase compared to 20 million dirhams for the same period in 2022, mainly driven by the recovery of the construction sector in the UAE.
Net profit amounted to 280.5 million dirhams, compared to 279.9 million dirhams during the first six months of 2022. Since December 31, 2022, net bank loans continued to decline, recording a decrease of 41% from 1.1 billion dirhams to 643.9 million dirhams, as the net debt ratio reached EBITDA of 0.5 as of June 30, 2023.
On this occasion, Eng. Saeed Ghamran Al Rumaithi, Group CEO, said: “Emirates Steel Arkan continued its strong and outstanding financial performance in the first six months of 2023, as it succeeded in achieving positive profits in line with our expectations, which reflects the resilience of our business despite the volatile market conditions. This exceptional performance is due to several factors, most notably the focus on higher value-added products with improved profit margins and enhanced operational efficiencies. A more disciplined approach to managing capital and capital expenditures has contributed to strengthening our balance sheet and thus advancing our growth strategy.”
Al Rumaithi added: “We affirm our commitment to achieving decarbonization and sustainability goals by increasing the operational efficiency of our facilities, reducing energy consumption used in manufacturing our products, adopting clean and renewable energy, in addition to establishing partnerships with regional and global powers to create a new supply chain for low-carbon steel in the UAE.” We also intend to reduce carbon emissions by 40% by 2030 and achieve net zero emissions by 2050, and today we are taking great steps to translate this ambition into reality.”
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