Abu Dhabi's Emirates Steel Arkan nearly doubles Q1-2023 net profit to Dh152.17m

  • Wednesday, May 10, 2023
  • Source:ferro-alloys.com

  • Keywords:Ferroalloy, Vanadium, Molybdenum, Tungsten, Manganese Ore, Chrome Ore,Iron Ore
[Fellow]Abu Dhabi's Emirates Steel Arkan nearly doubles Q1-2023 net profit to Dh152.17m

[Ferro-Alloys.com] Dubai: Profit for the UAE’s biggest listed steel and building materials company – Emirates Steel Arkan – nearly doubled to Dh152.17 million, with sales of steel driving sizeable gains in the first three months of Q1.

Another boost for the ADX-listed company was breaking into new export markets and higher margin products, with revenues up at Dh2.4 billion from Dh2.04 billion a year ago.

Going forward, the company will also have benefits emerging from the reduction in net bank borrowings by a ‘further Dh130 million’, which means a debt-to-equity ratio of 0.12 as at end March. It was 0.32 end December 2021, at the time of the merger between Emirates Steel and Arkan Building Materials. (On direct costs borne by the company at the end of the first quarter, the tally has risen to Dh2.13 billion from Dh1.86 billion a year ago.)

“As we move into our second full year of operations as a combined entity, our strategy remains to lead the way in promoting UAE-made steel and building materials,” said Saeed Ghumran Al Remeithi, Group CEO. “(And) thereby bolstering our international presence as a sustainability champion.

The higher margins and efficiencies from the expanded business reflect the ‘anticipated improvement in performance which we envisaged at the time of the strategic combination of Emirates Steel with Arkan’, the CEO added.

A second-half boost?

The UAE's construction sector is up for a second-half 2023 boost, with a new wave of offplan launches in the local property markets offering much by way of traction. Steel prices continue to rule on the higher side, and further export orders will line up quite favourably for Emirates Steel Arkan. The company expanded into three new markets for the commodity in Q1, while maintaining marketshare in the UAE.

Profit from the steel division for Q1-23 was Dh137.5 million against Dh61.1 million last year, working out to a 125 per cent increase.

  The 19th China Ferro-alloys International Conference, co-hosted by China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) & Ferro-Alloys.com ,Supported by China Ferroalloys Industrial Association, will be held on 31 May to 2 June 2023 in Beijing, China. By the end of 2022, China has fully lifted control of the epidemic and introduced proactive and prudent macroeconomic policies. The Conference will provide a platform for sharing macro-economic situation worldwide and discussing industry-wide emerging role of the Ferroalloys industry as potential backbone for economic growth of China. You are cordially invited to shape up ideas and present their visions for new business and investment opportunities at 19th INFACON at Beijing, China. Get in the room with decision makers along your supply chain to gauge market sentiment, explore new opportunities, meet old friends, and form your view of how 2023 might play out. Join us at the 19th INFACON 2023.

  • [Editor:tianyawei]

Tell Us What You Think

please login!   login   register
  • Buy & Sell

Please be logged in to comment!