Emirates Steel Arkan reports Dhs3.96bn in revenue for H1

Image: Emirates Steel Arkan

Emirates Steel Arkan has reported revenues of Dhs3.96bn and earnings before interest, taxes, depreciation and amortisation (EBITDA) of Dhs503m.

The group’s overall production volumes remained consistent with H1 2023, achieved through strategic flexibility by redirecting a portion of international exports to the UAE market.

Despite facing headwinds in both export and domestic markets, the group sustained a stable performance throughout H1 2024.

The global steel market continues to experience pressure due to the slowdown in the Chinese economy and geopolitical uncertainties.

In numbers: Emirates Steel Arkan’s key H1 financial highlights

1. Total revenues of Dhs3.96bn were approximately 10 per cent below the Dhs4.43bn reported in H1 2023.
2. The group reported an EBITDA of Dhs503m.
3. Net profit before tax stood at Dhs191m.
4. Revenue from the Steel division totalled Dhs3.60bn, generating a profit before tax of Dhs140m. The Building Materials division contributed Dhs353m in revenue, with a profit before tax of Dhs51m.
5. The group’s ongoing cost reduction and transformation programme added an incremental EBITDA enhancement of Dhs78m in H1 2024.
6. The group improved its cash position, with Dhs610m cash in hand at the end of H1 2024, compared to Dhs426m as of December 31, 2023.

Engineer Saeed Ghumran Al Remeithi, director and group CEO of Emirates Steel Arkan, said, “Emirates Steel Arkan has demonstrated exceptional resilience and strategic vision amidst challenging market conditions. Our performance in the first half of 2024 is strong, evidenced by revenues of Dhs3.96bn and EBITDA of Dhs503m.  The group’s focus on cost reduction and transformative initiatives has been pivotal in maintaining our competitive edge. Moreover, our recognition by the World Economic Forum for pioneering decarbonisation in steel production underscores our dedication to sustainable practices and our vision for a low-carbon future.”

He added, “As we enter H2, we will remain vigilant in monitoring market dynamics to stay agile. We will continue to collaborate closely with our downstream customers to meet their needs for value-added and low-carbon products. Additionally, we will maintain our commitment to supplying premium steel products, known for their sustainability, record-setting low carbon emissions, and exceptional durability, to landmark projects in the region, such as our latest agreement with Eversendai for the construction of the NEOM Trojena Ski Village.”

Read: Emirates Steel, Eversendai partner for NEOM Trojena Ski Village project