Emirates Steel Arkan's 2022 numbers was powered by higher demand for its products, including from key export markets. Image Credit: Source: Emirates Steel Arkan Website

Dubai: The merger sure has worked – Emirates Steel Arkan’s 2022 net profit has soared to Dh508.5 million from losses of Dh744.63 million a year ago. The combined entity was created from Arkan Building Materials and Emirates Steel last year.

Revenues rose to Dh9.5 billion, versus pro-forma Dh8.6 billion in 2021, while EBITDA increased to Dh1.16 billion, a 51 per cent year-on-year uptick from pro-forma Dh770 million.

According to Hamad A. Al Hammadi, Chairman, “The first full year results of the Group clearly demonstrate the value of combining, which has created a UAE steel and building materials champion that is globally competitive. Despite the global economic headwinds, the increasing reach of our products is testament to consumers’ trust and preference for ‘Made in UAE’ products.

In a note, the company makes a point to state that 2022 and 2021 comparisons do not provide an accurate picture, because the latter numbers ‘don’t include pre-acquisition Emirates Steel performance’.

In Q4-2022 alone, net profit came to Dh125 million, compared to an 'impairment charge driven loss' of Dh518 million for the same period a year ago. Revenues weighed in at Dh2.3 billion, from Dh2.4 billion in Q4-21.

New product line?

In the near term, the company is working on possibilities to expand the client base. For this, "We are studying options for producing flat steel as part of our strategy to diversify our client base and add manufacturing industry customers to our existing strong base of construction customers," said Saeed Ghumran Al Remeithi, Group CEO. "The strength of our financial position and the further savings we expect to realize this year will also allow us to rapidly capitalize on emerging opportunities, giving us greater confidence to continue our expansion plans.”

In the fourth quarter, the Group’s net profit came to Dh125 million, compared to an 'impairment charge driven loss of Dh518 million in Q4-21'. Revenues were at Dh2.3 billion against Dh2.4 billion for the same period.

2022 was a transformational year for the newly established Group, and it is gratifying that our focus on boosting output and reducing costs has borne fruit

- Saeed Ghumran Al Remeithi of Emirates Steel Arkan