Emirates Steel Arkan, a leading building materials group in UAE, has delivered stable performance throughout the first half of the year, with revenues of AED3.96 billion ($1.07 billion), down 10% over last year's figure of AED4.43 billion ($1.2 billion) despite challenging conditions impacting both export and domestic markets.

 

Announcing its financial results for the six-month period ended June 30, 2024, the Emirati group its ebitda for the period was AED503 million, while the group’s net profit before tax stood at AED191 million.

 

Revenue from the steel division totalled AED3.6 billion during H1, generating a profit before tax of AED140 million, while that from the building materials division was AED353 million with profit before tax of AED 51 million.

 

For the six-month period, Emirates Steel Arkan maintained overall production volumes in line with H1 2023. This was achieved mainly through strategic flexibility, allowing part of the international exports to be redirected to the UAE market. 

 

International steel markets remain under pressure, primarily as a result of the slowdown in the Chinese economy and global geopolitical uncertainties, it stated.

 

The Emirati group pointed out that the H1 performance demonstrates its resilience in challenging market conditions. In particular, the its continuing cost reduction and transformation programme contributed an incremental ebitda enhancement of AED78 million in H1 2024.

 

During the half-year the Group further improved its cash position, and as of the end of H1 2024 the group had AED610 million cash in hand compared to AED 426 million as of 31 December 2023.

 

The group was recognised as the 2024 Steel Sustainability Champion by the World Steel Association for its pioneering efforts in decarbonizing steel production throughout 2023.

 

The group's efforts have been commended by the World Economic Forum for its outstanding efforts in decarbonizing the iron and steel industry, placing it among the top five leading steel companies worldwide that have received this recognition.

 

Director and Group CEO Saeed Ghumran Al Remeithi said: "Emirates Steel Arkan has demonstrated exceptional resilience and strategic vision amidst challenging market conditions. Our performance in the first half of 2024 is strong, evidenced by revenues of AED 3.96 billion and EBITDA of AED 503 million. This achievement underscores our unwavering commitment to operational excellence and innovation."

 

"The group’s focus on cost reduction and transformative initiatives has been pivotal in maintaining our competitive edge. Moreover, our recognition by the World Economic Forum for pioneering decarbonization in steel production underscores our dedication to sustainable practices and our vision for a low-carbon future," he noted.

 

Al Remeithi said as it enters the second half of the year, Emirates Steel Arkan will remain vigilant in monitoring market dynamics to stay agile. 

 

"We will continue to collaborate closely with our downstream customers to meet their needs for value-added and low-carbon products. Additionally, we will maintain our commitment to supplying premium steel products, known for their sustainability, record-setting low carbon emissions, and exceptional durability, to landmark projects in the region, such as our latest agreement with Eversendai for the construction of the NEOM Trojena Ski Village," he added.-TradeArabia News Service