Emirates Steel Arkan Post $1.08 Billion in Profit in H1-2024

Emirates Steel Arkan, one of the largest publicly traded steel and building materials manufacturers in the region, on Friday said that its revenue for the first six months of this stood at $1.08 billion compared with $1.21 billion in H1 of 2023, and EBITDA of $136.95 million.

The Group has delivered stable performance throughout H1 of 2024, despite challenging conditions impacting both export and domestic markets. International steel markets remained under pressure, primarily as a result of the slowdown in the Chinese economy and global geopolitical uncertainties, the company said in a filing with Abu Dhabi Securities Exchange (ADX).

In H1 of 2024, the Group maintained overall production volumes in line with H1 2023. This was achieved through strategic flexibility, allowing part of the international exports to be redirected to the UAE market.

Strong Financial Performance

The Group’s net profit before tax was $52 million. And the revenue from the steel division totalled $980 million during H1 of 2024, generating a profit before tax of $38.12 million. Revenue from the building materials division was $91.11 million in H1 of 2024, with profit before tax of $13.81 million.

The Group’s performance demonstrates its resilience in challenging market conditions. In particular, the Group’s continuing cost reduction and transformation programme contributed an incremental EBITDA enhancement of $21.24 million in H1 of 2024.

During the half-year, the Group further improved its cash position, and as of the end of H1 2024, it had $166.08 million cash in hand compared with $115.98 million as of 31 December 2023.

Emirates Steel Arkan Director and Group CEO Saeed Ghumran Al Remeithi said that the company has demonstrated exceptional resilience and strategic vision amidst challenging market conditions.

He said that the financial performance in the first half of 2024 has been strong, evidenced by the revenue and EBITDA and 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 the company’s competitive edge. Moreover, its recognition by the World Economic Forum (WEF) for pioneering decarbonisation in steel production underscores our dedication to sustainable practices and our vision for a low-carbon future, he said.

“As we enter the second half of the year, we 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.