[ad_1]
Emirates Steel Arkan, the largest listed steel and construction materials company in the UAE, saw its first-quarter (Q1) net profit soar 110% to AED152.2 million (US$41.45 million). This compares to a net profit of AED72.6 million in the first three months of 2022.
The strong performance in the first quarter of 2023 was driven by several factors, including higher volumes in the steel sector, penetration of new export markets and higher volumes of value-added products and improved margins.
The steel sector’s revenues totaled AED 2.14 billion in the first quarter of 2023, compared to AED 1.81 billion in the same period in 2022. The steel division posted a profit of AED 137.5 million in the first three months of 2023, compared with a net profit of AED 61.1 million in the same period in 2022, an increase of 125%.
cement and blocks
The cement and blocks segment recorded revenue of AED 211.2 million in the first three months of 2023, compared to AED 183.2 million in the same period in 2022. The segment posted a profit of AED 10.6 million compared to a profit of AED 9.3 million for the same period in 2022.
The combined business recorded quarterly revenue of AED 2.41 billion, compared to AED 2.04 billion in the same period in 2022, an increase of 18%.
EBITDA for the period was AED 320 million, an increase of 41%. The EBITDA margin for the period was 13.3%, up 2% from the 11.2% reported in Q1 2022, with growth driven mainly by the steel segment.
Net bank borrowings were further reduced by AED 130 million in the quarter, resulting in a debt-to-equity ratio of 0.12 as of 31 March 2023, compared to 0.32 as of 31 December 2021 on a consolidated basis.
The Group’s ‘Namaa’ transformation program continues to deliver efficiency and revenue optimization.
Operating Highlights
Higher profitability in the first quarter was linked to higher volumes and margins, driven by continued growth in the manufacture and sale of value-added products in domestic and export markets, improved construction activity and increased demand for residential developments in the UAE and the wider GCC area.
Emirates Steel Arkan expanded into three new steel markets in the first quarter and successfully exported glass fiber reinforced plastic (GRP) pipes to three projects in France, while maintaining its steel market share in the UAE.
Group CEO Eng Saeed Ghumran Al Remeithi said: “Emirates Steel Arkan continues to deliver strong financial performance in the first three months of 2023, with net profit doubling year-on-year. This is due to our entry into new markets and our focus on High value-added products that improve margins, supported by favorable cost and pricing conditions, and achieve greater efficiencies in expanding the business, while remaining focused on our sustainability mission. This reflects our commitment at Emirates Steel and Arkan strategic merger.
lead the way
“As we enter our second full year of operations as a consolidated entity, our strategy remains to take the lead in promoting UAE-made steel and construction materials, thereby strengthening our international presence as sustainability champions. We Committing to a 40% reduction in carbon emissions by 2030 and net zero emissions by 2050 demonstrates our commitment to fighting climate change.”
Emirates Steel Arkan actively contributes to the UAE’s Industrial Strategy ‘300 Billion Action’ by supplying local industry with market-leading products, creating jobs for UAE nationals and strengthening its sustainable practices. — trade arab news agency
[ad_2]
Source link