“Emirates Steel Arkan” announced its financial results for the first half of 2024, as the group’s revenues amounted to 3.96 billion dirhams, while its earnings before interest, taxes, depreciation and amortization amounted to 503 million dirhams.
The group provided stable performance during the first half of 2024, despite the difficult conditions that affected local markets and exports, as international steel markets suffered from continuous pressures during the past period, due to the slowdown in the growth of the Chinese economy and geopolitical conditions in the world.
The Group maintained total production volume similar to the level of production during the first half of 2023, through balancing and adopting flexibility by transferring part of international exports to the local market in the UAE. The Group’s total revenues amounted to AED 3.96 billion, a decrease of 10% compared to AED 4.43 billion in the first half of 2023.
Earnings before interest, taxes, depreciation and amortization amounted to AED 503 million during the first half of 2024, while the Group’s net profit before tax amounted to AED 191 million. The Steel Division’s total revenues amounted to AED 3.60 billion during the first half of 2024, achieving profits before tax of AED 140 million.
The Building Materials Division also recorded revenues of AED 353 million and profits before tax of AED 51 million.
The Group’s performance reflected its great resilience in the face of difficult market conditions, as the Group was able, thanks to the cost reduction program and continuous development efforts, to achieve additional savings of AED 78 million during the first half of 2024, before deducting interest, taxes, depreciation and amortization. During the first half of the year, the group further improved its cash position, and by the end of the first half of 2024, the group had AED 610 million in cash compared to AED 426 million on 31 December 2023.
On this occasion, Engineer Saeed Ghumran Al Remeithi, CEO of Emirates Steel Arkan Group, said: “Emirates Steel Arkan Group has demonstrated great resilience and an ambitious strategic vision in the face of difficult market challenges. Our performance in the first half of 2024 was strong, with revenues of AED 3.96 billion and EBITDA of AED 503 million, reflecting our deep commitment to operational excellence and sustainable innovation. Our cost optimization and process development initiatives played a pivotal role in enhancing our competitiveness. The World Economic Forum’s recognition of our pioneering efforts to decarbonize the steel industry highlighted our firm commitment to sustainable environmental practices and our vision for a low-carbon future.”
“As we enter the second half of the year, we will be monitoring market developments to maintain our resilience and will continue to work closely with our customers to meet their needs for value-added, low-carbon products. In addition, we will maintain our commitment to supplying premium steel products, known for their exceptional durability and sustainability, to prominent projects in the region, such as our recent agreement with Eversendai to supply structural steel beams for the construction of the Trojena Ski Village project in NEOM, Saudi Arabia,” he added.
