Eng. Saeed Al Rumaithi, CEO of Emirates Steel, Arkan, praised the positive results achieved by the group in the first half of this year, explaining that the group is the largest listed joint stock company in the construction sector in the country.
Al-Rumaithi said in an interview with «Al-Khaleej» that the company succeeded in opening new markets for its products, which reached 60 markets around the world by the end of the first half of this year, instead of 65 markets until the end of 2021.
He explained that the improvement in the operational efficiency of the group has helped to avoid risks and market fluctuations, especially that the market is generally unstable, stressing that the company is on an approach to achieve outstanding performance during the coming period.
Emirates Steel, Arkan, announced a net profit for the second quarter of 207 million dirhams, compared to a pre-merger loss of 24 million dirhams for the same period last year, with a growth of 184% compared to a net profit of AED 73 million for the first quarter of the year.
The group’s net profit amounted to 280 million dirhams for the first six months of 2022, compared to a loss before the merger of AED 23 million in the first half of last year, while the revenues of the first half rose to AED 4.61 billion from the same period last year.
During the first half of 2022, the group succeeded in enhancing the efficiency of the performance of its factories and adopted a wise approach in managing the stock of raw materials while maintaining low levels of final product quantities to benefit from the increase in prices and to manage the risks associated with their fluctuations.
The increase in any profits in the second quarter is due to the increase in sales volume, increase in prices as well as improved efficiency of operations and favorable conditions in the commodity market. The group’s revenues rose to AED 2.57 billion in the second quarter, compared to AED 195 million for the same period last year, as Emirates Steel contributed 90% of the group’s revenues, while Arkan contributed 10% of it.
Earnings per share increased during the second quarter to AED 0.03 , compared to a pre-merger loss of AED 0.014 per share in the same period last year.