Emirates Steel Arkan, the UAE’s largest publicly traded steel and building materials manufacturer, experienced a revenue decline due to a slowdown in the Chinese economy and global geopolitical uncertainties.
In the first half of 2024, Emirates Steel Arkan maintained production volumes comparable to H1 2023 by redirecting part of international exports to the UAE market. Total revenues amounted to AED 3.96B ($1.08B), nearly 10 per cent lower than AED 4.43B ($1.21B) in H1 2023. EBITDA was AED 503M ($137M), and net profit before tax stood at AED 191M ($52M).
Despite challenging market conditions, the group’s performance showcased resilience. Cost reduction and transformation programmes contributed to an incremental EBITDA enhancement of AED 78M ($21.25M). Revenue from the Steel division totalled AED 3.60B ($980M), generating a profit before tax of AED 140M ($38.1M). Revenue from the Building Materials division was AED 353M ($96.1M).
Saeed Ghumran Al Remeithi, Director and Group CEO, commented: “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 3.96B and EBITDA of AED 503M. This achievement underscores our commitment to operational excellence and innovation. The group’s focus on cost reduction and transformative initiatives has been pivotal in maintaining our competitive edge.”
Al Remeithi added that the company will remain agile in facing future challenges. “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.”
Emirates Steel Arkan improved its cash position in H1 2024, reaching AED 610M ($166.1M) compared to AED 426M as of 31 December 2023.
