Dubai: Cairo-listed Ezz Steel, the largest independent producer of steel in the Mena region, said yesterday its second-quarter net profit more than tripled to 136 million Egyptian pounds (Dh87.5 million), compared with 37 million in the same quarter last year.
Managing director Paul Chekaiban said in a statement: "The results reflect a substantial improvement from the comparable period last year.
‘Strong performance'
"We have achieved a strong operational performance in the first half of 2010 with revenue growth of 17 per cent year-on-year, mainly driven by the restart of our EFS flat steel facility and a more positive pricing environment.
"As we go forward, despite a general context of sharp volatility, we expect demand and prices of steel products to improve gradually during the second half of 2010."
Consolidated net sales for the first half of 2010 were 7.5 billion Egyptian pounds, 17 per cent higher than in the same period of 2009, reflecting the restart of production at EFS.
Ezz Steel's production of long steel products is primarily directed to serving the domestic market, while flat steel production is mainly aimed at the global steel market.
Long steel sales volume reached 1,553 thousand tonnes in the first half, a two per cent decrease over the 1,578 thousand tonnes sold during the same period in 2009.
Flat steel sales volumes witnessed an increase from 523 thousand tonnes in the first six months of last year to 644 thousand tonnes, an increase of 23 per cent.
Long steel products accounted for 68 per cent of total sales, accounting for EGP 5,138 million, while flat steel products represented 30 per cent of sales at EGP 2,284 million.
Gross profit of EGP 1,094 million in the first half was an increase of 48 per cent from the EGP 741 million recorded in the same period in 2009.
Amortisation
Earnings before interest, tax, depreciation and amortisation, or EBITDA, for the period reached EGP 1,206 million, up from EGP 845 million for the first half of 2009, an increase of 43 per cent. Net profit after tax and minority interests was EGP 241 million, 151 per cent higher than the EGP 96 million reported for the first half of 2009.
