In a recent financial update, Emirates Steel Arkan revealed its first-quarter performance for 2024. Despite facing headwinds in the global steel market, the company demonstrated resilience and efficiency. Here are the key highlights:
Emirates Steel Arkan reported a marginal 8% year-on-year decrease in first-quarter net profit before tax. The figure stood at AED 140 million, compared to AED 152 million in the same period of 2023.
This decline reflects the impact of various factors, including a slowdown in the Chinese economy, investor confidence challenges in Europe, and elevated freight costs due to regional geopolitical tensions.
The group posted revenues of AED 2.14 billion (equivalent to $580 million).
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 2024 amounted to AED 294 million.
Despite the challenging global economic landscape and volatility in commodity prices, Emirates Steel Arkan maintained a solid operating performance.
Revenue from the steel division totaled AED 1.95 billion during Q1 2024, generating a profit after tax of AED 86 million.
Revenue from this division was AED 187 million, with a profit after tax of AED 42 million.
Emirates Steel Arkan’s continuing efforts in cost reduction and transformation contributed incremental savings of AED 46 million in Q1 2024.
The group’s net profit after tax reached AED 128 million, reflecting the standard tax rate of 9%.
The group improved its net borrowing position, ending Q1 2024 with a Net Cash Position of AED 155 million.
In line with its long-term strategy, Emirates Steel Arkan explored a green metal project through a framework memorandum with Omani counterparts.
The company was recognized as a 2024 Steel Sustainability Champion by the World Steel Association for enhancing sustainability in operational practices.
Notably, Emirates Steel Arkan marketed sustainable flood defense solutions using Z-type and U-type sheet piles.
Despite the challenges, Emirates Steel Arkan remains committed to growth and sustainability, positioning itself as a key player in the steel industry.
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