Emsteel has announced its financial results for the first nine months of 2024, reporting revenues of AED 5.87 billion, down 9% from AED 6.48 billion during the same period last year. The decrease reflects several market challenges, including fluctuations in global steel prices, intensified competition, and shifting demand driven by economic uncertainties.
In a challenging third quarter, the company recorded a loss of AED 82.6 million, contrasting sharply with a profit of AED 107.1 million in Q3 2023. Despite these setbacks, Emsteel emphasized its adaptability, noting that its steel division, Emirates Steel, demonstrated stability while its building materials segment, Emirates Cement, saw improved profitability.
Throughout the first nine months, Emsteel maintained consistent steel production rates compared to the previous year, yet faced pressure on profit margins due to a surge in competitively priced Chinese steel in the GCC and key export markets like Europe and the United States. The group achieved an EBITDA of AED 645 million, reflecting an EBITDA margin of 11%, down from 13.6% in 2023.
Emirates Steel's revenues totaled AED 5.34 billion, with a pre-tax profit of AED 20 million, impacted by challenging global market conditions and a significant allocation of AED 83 million related to ongoing legal proceedings. In contrast, Emirates Cement reported revenues of AED 537 million and a pre-tax profit of AED 81 million, improving its net profit margin to 15%, up from approximately 14% last year.
Despite the hurdles, Emsteel ended the third quarter with a robust cash position of AED 623 million, a significant increase from AED 426 million at the close of 2023. Looking forward, the company remains focused on navigating the evolving market landscape while maintaining its commitment to operational resilience and innovation.
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