Economy

Emirates Steel Arkan…profits and environmental initiatives despite the slowdown in the market

2023-11-05 06:02:27

Emirates Steel Company Arkan, one of the largest listed companies producing iron and building materials in the region, announced its financial results for the first nine months of 2023, achieving a net profit of 387.6 million dirhams (more than $105 million), compared to 382.2 million dirhams during the period. Same as last year.

The company’s revenues amounted to 6.48 billion dirhams during that period, and these results reflect the flexibility of the steel unit’s business to keep pace with market changes, as well as the continuous improvement in the revenues and profits of the building materials unit despite the global market slowdown.

Saeed Ghumran Al Rumaithi, CEO of Emirates Steel Group Arkan, confirmed in an interview with “CNN Al-Eqtisadiah” that the group is working effectively to reduce the impact of its industrial work on the environment, in line with the principles of reducing climate change and the strategic initiative to achieve zero carbon neutrality by 2050. In the country.

As part of achieving the zero carbon neutrality strategy, Al Rumaithi said that the group is adopting a clear sustainability strategy, aiming to reduce its carbon emissions by 40 percent by 2030, compared to 2019.

He added, “We continue to work to implement our planned decarbonization plan, which aims to reduce our carbon emissions by 40 percent by 2030 and achieve net zero emissions by 2050. This commitment will contribute to strengthening our growing portfolio of low-carbon products and developing our supply chain. And strengthening our partnerships to enable the group to move forward with decarbonization efforts.”

Highlights of financial results

The group achieved positive results during the first nine months of 2023 with revenues amounting to 6.48 billion dirhams, with profit margins stable despite the decline in prices of iron products in light of the continued increase in the manufacture and sale of value-added products in the local and export markets, in addition to the boom in construction activities.

Earnings before deducting interest, taxes, depreciation and amortization for this period amounted to 884 million dirhams, an increase of three percent compared to the same period in 2022, while the profit margin before deducting all of these items amounted to 13.6 percent compared to 12.1 percent in the same period last year.

The steel unit’s total business revenues amounted to 5.81 billion dirhams during the first nine months, and its profits reached 295.3 million dirhams, and the building materials unit’s revenues amounted to 670.7 million dirhams during that period, mainly due to the increasing growth of the construction sector in the UAE.

Al Rumaithi said, “The financial results of the Emirates Arkan Steel Group during the first nine months of 2023 confirm the continuity of our distinguished performance and the flexibility of our business, as we achieved positive profits despite the difficult market conditions, and we continued to focus during this period on products with high added value, as well as enhancing Efficiencies and EBITDA improvement initiatives through the Nama 2.0 corporate transformation program.”

The group has joined Responsible Steel, a global non-profit standards and certification initiative for multiple players in the steel supply chain, working to advance the socially and environmentally responsible production of carbon-neutral steel.

The group also signed a memorandum of understanding with the Oman Company and Etihad Rail to export raw materials from the Sultanate of Oman to the UAE.