Abu Dhabi, 2 August / WAM / Emirates Steel Arkan today announced its financial results for the first half of 2024, with the group’s revenues reaching AED 3.96 billion, while its earnings before interest, taxes, depreciation and amortization reached AED 503 million.
The Group has delivered stable performance during the first half of 2024, despite the difficult conditions that affected local markets and exports. International steel markets have also been under continuous pressure during the past period, due to the slowdown in Chinese economic growth and geopolitical conditions in the world.
The group maintained the total production volume, similar to the production level during the first half of 2023, through balancing and adopting flexibility by transferring part of international exports to the local market in the UAE.
The steel division’s total revenues amounted to AED 3.60 billion during the first half of 2024, achieving a pre-tax profit of AED 140 million.
The building materials division also recorded revenues of AED 353 million and pre-tax profits of AED 51 million.
The Group’s performance reflected its great resilience in the face of difficult market conditions, as the Group was able, thanks to the cost reduction programme and continuous development efforts, to achieve additional savings of AED 78 million during the first half of 2024, before deducting interest, taxes, depreciation and amortisation.
During the first half of the year, the Group further improved its cash position, and by the end of the first half of 2024, the Group had AED 610 million in cash, compared to AED 426 million on December 31, 2023.
The Group was honoured and named “Sustainability Leader in the Steel Industry for 2024” by the World Steel Association, thanks to its pioneering efforts in reducing the environmental footprint and decarbonising steel production, within its operational practices throughout 2023.
The Group’s efforts were commended by the World Economic Forum for its outstanding efforts in decarbonizing the iron and steel industry, making it one of the five most prominent iron companies in the world that have received this international appreciation and recognition.
“Emirates Steel Arkan has demonstrated resilience and an ambitious strategic vision in the face of tough market challenges,” said Eng. Saeed Ghumran Al Remeithi, CEO of Emirates Steel Arkan Group. “The financial and operational results reflect our deep commitment to operational excellence and sustainable innovation. Our cost optimization and process development initiatives have played a pivotal role in enhancing our competitiveness.”
“The World Economic Forum’s recognition of our pioneering efforts in decarbonizing the steel industry highlights our strong commitment to sustainable environmental practices and our vision for a low-carbon future,” he added.
“As we enter the second half of the year, we will be monitoring market developments to maintain our resilience, and continue to work closely with our customers to meet their needs for value-added, low-carbon products. We will also maintain our commitment to supplying premium steel products, known for their exceptional durability and sustainability, to prominent projects in the region, such as our recent agreement with Eversendai to supply structural steel beams for the construction of the Trojena Ski Village project in NEOM, Saudi Arabia,” he explained.
