Emirates Steel Arkan (EMSTEEL), the UAE's largest publicly traded steel and building materials company, has reported solid financial results for the first half of 2023.
Since 31 December 2022, the Group successfully reduced its net bank debt by an impressive 41%, bringing it down from AED 1.1 billion to AED 643.9 million as of 30 June 2023. This reduction in net debt has significantly improved the company's financial position and strengthened its balance sheet. The net debt-to-EBITDA ratio, a crucial indicator of a company's debt sustainability, now stands at an encouraging 0.5 as of 30 June 2023.
The Group's performance in H1 2023 showcased the resilience of its Steel business amidst market downturns. Emirates Steel Arkan recorded a notable EBITDA of AED 612 million, representing a 3% increase compared to the same period in 2022. Furthermore, the EBITDA also saw a 6% growth compared to the second half of 2022. The EBITDA margin for the period stood at 13.8%, reflecting a significant improvement compared to the 12.9% reported in H1 2022.
The Steel division played a significant role in this achievement, contributing AED 3.95 billion to the total revenue for H1 2023. Moreover, the division's profit amounted to AED 224.8 million, reflecting its operational efficiency and solid financial performance.