Emirates Steel Arkan, the largest publicly traded steel and building materials company in the UAE, has seen its first-quarter (Q1) net profit shoot up 110% to AED152.2 million ($41.45 million).
In a statement, the steel company explained that its strong performance in the first quarter of 2023 was driven by several factors such as increased volumes from the steel division, the penetration of new export markets, and increased sales of value-added products with enhanced margins.
Emirates Steel Arkan had reported a net profit of AED72.6 million in the first three months of 2022, the statement noted.
Revenue from the steel division totalled AED 2.14 billion for Q1 2023, from AED 1.81 billion in the equivalent period in 2022. Profit from the steel division for the first three months of 2023 was AED 137.5 million as compared to a net profit of AED 61.1 million for the same period in 2022, an increase of 125%.
Similarly, the revenues from the cement and blocks division was AED 211.2 million for the first three months of 2023, compared to AED 183.2 million for the equivalent period in 2022. The division’s profit was AED 10.6 million as compared to a profit of AED 9.3 million for the same period in 2022.
Commenting on the results, Eng. Saeed Ghumran Al Remeithi, Group CEO, said, “Emirates Steel Arkan continued its strong financial performance in the first three months of 2023 with a doubling of net profit year-on-year.
“This was driven by our entry into new markets, our focus on higher-value-added products with improved margins supported by favourable cost and pricing conditions, and further efficiencies achieved in our expanded business whilst remaining focused on our sustainability mission. This reflects the anticipated improvement in performance which we envisaged at the time of the strategic combination of Emirates Steel with Arkan,” he said.
Emirates Steel Arkan is actively contributing to the UAE’s industrial strategy ‘Operation 300 billion’ by delivering market-leading products to local industries, creating job opportunities for UAE nationals, and enhancing its sustainable practices.