EMSTEEL announced today its preliminary (unaudited) financial results for Full Year 2024.

During 2024, EMSTEEL maintained overall steel production volumes in line with the level attained during 2023. The Group delivered total revenues of AED 8.3 billion, approximately 6% lower than the AED 8.9 billion reported for 2023.

This decrease in revenue is due to various factors, including fluctuations in global steel prices, increased competition, and changing demand trends driven by economic uncertainties in key markets.

EMSTEEL’s profitability margins have been affected by an increase in low-priced Chinese steel exports, which have directly or indirectly impacted prices in several of the Group’s key markets, including the GCC and important export destinations like Europe and the US. Despite the challenging market environment EMSTEEL realized a solid Profit before tax of AED 432 million and Net Profit after tax of AED 392 million.

The Group further strengthened its balance sheet, realizing a positive net cash generation of AED 401 million resulting in a balance sheet free of net debt. The Net Profit was supported by the reversal of an impairment taken during COVID, with a net positive impact of AED 189 million.

In 2024, EMSTEEL recorded EBITDA of AED 892 million, with a margin of 10.9%, compared to 14.2% in 2023. EMSTEEL’s FY24 profitability was supported by a significant improvement of the Group’s EBITDA during the fourth quarter of the year, amounting to AED 247 million, up 81% compared to the third quarter of 2024.

One of the key factors was EMSTEEL’s ability to leverage increased UAE construction activity, which supported rebar demand and allowed the Group to maximize capacity utilization, while at the same time improving price realization in this core segment.

Revenue from the Group’s Emirates Steel division totalled AED 7.6 billion during 2024, generating an EBITDA of AED 680 million. Emirates Steel’s performance was impacted by adverse global market conditions.

Revenue from the Group’s Emirates Cement division was AED 0.8 billion in 2024, with an EBITDA of AED 212 million. Within the Cement division the Pipes & Other segment is reported as Assets held for Sale as a divestment process is ongoing. Revenue for this segment amounted to AED 156 million in 2024.