Emirates Arkan Steel Company, EMSTEEL, recorded net profits during the first half of 2023 of about 280.5 million dirhams, an increase of 0.3%, compared to 279.9 million dirhams in the corresponding period of 2022.
The company’s revenues in the first half amounted to about 4.43 billion dirhams, compared to 4.6 billion dirhams.
The results of the first half of 2023 revealed the resilience of the group’s steel unit business in the face of market turbulence, as well as the continuous improvement in the revenues and profits of the building materials unit.
EBITDA for the period was AED 612 million, up 3% over the first half of 2022, and up 6% over the second half of 2022 due to enhanced efficiency levels across the group.
The EBITDA margin was 13.8%, compared to 12.9% in the first half of 2022.
Moreover, in light of the global gap between supply and demand, which led to a temporary increase in the sales prices of the “group” products during the first half of 2022, the group’s revenues in the first half of this year are excellent.
The total revenues of the steel unit business amounted to 3.95 billion dirhams during the first half of 2023, and the profits of this unit amounted to 224.8 million dirhams.
Revenues of the building materials unit amounted to 475.8 million dirhams during the first half of 2023, an increase of 9% on an annual basis.
The unit’s profits amounted to 56 million dirhams, a significant increase compared to 20 million dirhams for the same period in 2022, mainly driven by the recovery of the construction sector in the UAE.
Since December 31, 2022, net bank loans continued to decline, recording a 41% decrease from 1.1 billion dirhams to 643.9 million dirhams, as the net debt-to-earnings ratio before deducting interest, taxes, depreciation, and amortization reached 0.5 on June 30, 2023.