Dubai: Abu Dhabi’s Emirates Steel Arkan reported a 0.2 per cent increase in half-yearly net profit at Dh280.5 million, UAE’s biggest listed steel and building materials company said on Tuesday.
During H1-2023, the Group reported an EBITDA of Dh612 million, a 3 per cent increase from H1-2022, attributed to enhanced efficiency across the organization. Despite a global supply-demand imbalance that had boosted sales prices in the first half of 2022, the combined business recorded six-month revenue of Dh4.43 billion, down 3.9 per cent, compared to Dh4.61 billion during the same period in 2022
The Steel division contributed significantly to the Group’s performance, with H1-2023 revenue totaling Dh3.95 billion and a profit of Dh224.8 million. The Building Materials division also exhibited growth, with H1-2023 revenue reaching Dh475.8 million, a 9 per cent year-on-year increase, and a profit of Dh56 million compared to Dh20 million in H1-2022, driven by the thriving UAE construction sector.
Additionally, since December 2022, the Group has made substantial progress in reducing net bank debt by 41 per cent, bringing it down to Dh643.9 million, resulting in a net debt-to-EBITDA ratio of 0.5 as of June 2023.
“Emirate Steel Arkan’s overall performance continued to be strong in the first six months of 2023 with healthy profits in line with our expectations, further demonstrating our agility and resilience despite volatile market conditions,” said Eng. Saeed Ghumran Al Remeithi, Group CEO. “This performance was delivered by focusing on higher-value-added products with improved margins and enhanced efficiencies.”
“Better capital control and targeted capital expenditure has also strengthened our balance sheet to support our ability to drive our growth strategy forward.”
Operational highlights for H1-2023 include the robust profitability achieved through high demand for the Group’s steel products, stable margins despite commodity steel price reductions, and an increase in the manufacture and sale of value-added products for domestic and export markets. The Group also implemented a new operating model, establishing Emirates Steel and Building Materials as two distinct business units.