Eng. Saeed Ghamran Al Rumaithi, CEO of Emirates Steel Group, Arkan confirmed that the Group continues its excellent financial and operational performance, explaining that the results it achieved during the first half of this year confirm this.
In an interview with Gulf News, Al-Rumaithi said, “Despite the decline in market momentum, the increase in fluctuations in commodity prices, and the growing fears of high inflation rates, the group recorded strong growth in profits during the second quarter of this year. Which reflects our high operational efficiency and continued success in reducing our indebtedness significantly, improving the way we manage cash flow and inventory. The positive consecutive quarterly results confirm that the merger that took place between Emirates Steel and Arkan Building Materials in the fourth quarter of 2021 was the right step on the path of growth and prosperity for both companies.”
The group’s net profits amounted to 280 million dirhams for the first six months of 2022, compared to a loss before the merger of 23 million dirhams in the first half of last year, while profits for the first half rose to 4.61 billion dirhams, compared to 418 million dirhams for the same period in the previous year.
Al Rumaithi added, “The Group has succeeded in achieving these excellent results in conjunction with the uncertain and volatile global markets conditions by taking some measures. As maintaining low levels at the minimum stock of our raw materials and finished products, which led part of the working capital liberation, led to the support of the Group position in front of the potential fluctuations of the global markets. We have also taken several measures to enhance business resilience, including strategic structural changes, investment in new environmentally friendly products, an extensive marketing program, and tight cost management.”
Increasing export markets
He stated that Emirates Steel Arkan could increase the number of export markets for its steel products during the first half of this year, including Europe, America, Asia, the Middle East, and North Africa. The group remains committed to strengthening the group’s presence in global markets and raising the competitiveness of UAE products.
He continued: “Among the products that will help us achieve this is the new steel reinforcement (ES600), which the group plans to launch during the last quarter of 2022. The new product, which is characterized by its superior strength, will also help reduce the carbon footprint of the group, knowing that its emissions are much lower than the global average carbon emissions of industry peers. In addition to supporting the efforts of our customers in their plans to reduce their impact on the environment.
The Group CEO said, “On a larger scale, the Group continues to work with its partners to develop a comprehensive roadmap to achieve climate neutrality in line with national goals to reduce carbon emissions. It is worth noting that our building materials sector is currently studying plans to produce green cement using low-carbon production technologies and processes.”
He concluded: “We are fully confident in the growth and development the group will achieve and in the bright future that awaits it. We have a clear strategy to expand geographically, diversify our product portfolio further, and continue to provide long-term value to our shareholders. The group continues its strong commitment to supporting the economic growth of the United Arab Emirates and the goals of economic diversification. We are working to achieve the objectives of the National Strategy for Industry and Advanced Technology “Project 300 Billion”, and we look forward to further contributing to the success of this strategic initiative by investing in sustainable and responsible industry practices, employing the latest technologies, invest in research and development, and continue to develop and nurture local talent.”