Abu Dhabi: Emirates Steel Arkan, the largest publicly traded steel and building materials company in the UAE, announced Friday financial results for H1 2024, generating a total revenue of Dh3.96 billion in the year so far. This marks a 10 per cent drop compared to the Dh4.43 billion revenue generated in H1 2023.
The group achieved a ‘stable performance throughout H1 2024,’ with an EBITDA of Dh503 million, despite facing challenging conditions in both export and domestic markets.
The company stated, “International steel markets continue to face pressure, largely due to the slowdown in the Chinese economy and global geopolitical uncertainties.”
In the face of a market downturn, the group’s steel business and building materials division demonstrated resilience.
Revenue from the steel division totalled Dh3.60 billion during H1 2024, generating a profit before tax of Dh 140 million. Revenue from the building materials division was Dh353 million in H1 2024, with a profit before tax of Dh 51 million.
In line with H1 2023, the group maintained overall production volumes in the first half of this year. “This was achieved through strategic flexibility, allowing part of the international exports to be redirected to the UAE market,” it said in a statement.
Saeed Ghumran Al Remeithi, Director and Group CEO of Emirates Steel Arkan, said: “Our performance in the first half of 2024 is strong, evidenced by revenues of Dh3.96 billion and EBITDA of Dh503 million.”
Al Remeithi said, “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.”
Strategy in the future
The group said it continues its ongoing upgrade of its current assets to better address the evolving requirements of the market and respond to the increasing demand for higher-grade steel. Al Remeithi said, “As we enter the year's second half, 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.”
He added, “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.”
