UAE’s Emirates Steel Arkan saw a significant drop in profits during the first half of 2024 due to tough conditions in both export and domestic markets. The company’s net profit for Q1 2024 fell to AED 174.4 mln (USD 47.4 mln) from AED 280.4 mln, as reported to the Abu Dhabi Securities Exchange.
Revenue for the period decreased by 10.7pct YoY to AED 3.956 bln (USD 1.07 bln). The steel division contributed AED 3.60 bln (USD 980 mln) to the revenue, with a profit before tax of AED 140 mln (USD 38 mln). The Building Materials division generated AED 353 mln (USD 96 mln) in revenue and a profit before tax of AED 51 mln (USD 13.8 mln).
The company cited pressure from international steel markets, influenced by the slowdown in the Chinese economy and global geopolitical uncertainties.
Eng. Saeed Ghumran Al Remeithi, Director and Group Chief Executive Officer, emphasized the company’s resilience and strategic focus amid these challenges. He noted that cost reduction and transformative initiatives have been crucial in maintaining a competitive edge. The company’s recognition by the World Economic Forum for its decarbonization efforts highlights its commitment to sustainable practices and a low-carbon future.
Looking ahead, Emirates Steel Arkan will remain agile, focusing on collaboration with downstream customers to provide value-added and low-carbon products. The company will continue to supply high-quality steel products to landmark projects, including its recent agreement with Eversendai for the Neom Trojena Ski Village, Al Remeithi said.
Formed by the 2021 merger of Emirates Steel and Arkan Building Materials, Emirates Steel Arkan is majority-owned by Abu Dhabi holding company ADQ. The group has an annual steel production capacity of 3.5 mln tons and offers a range of products including wire rods, rebars, heavy sections, and sheet piles, as well as premium cement, blocks, pipes, and dry mortar. It serves both the UAE and over 70 international markets.
1 USD / 3.67 AED
