Emirates Steel Arkan announces Q2 2022 net profit jumped 184%

Emirates Steel Arkan announces Q2 2022 net profit jumped 184%

ABU DHABI - Emirates Steel Arkan today announced its second-quarter results, reporting a net profit of AED207 million in the second quarter compared to a pre-merger loss of AED24 million in the same period of last year and a 184% gain from AED73 million in Q1, driven by higher sales volumes and prices, enhanced operational efficiencies, and a supportive commodity market environment.

Revenues rose to AED2.57 billion in Q2 compared to AED195 million in the corresponding quarter last year. Steel continued to contribute 90% of the Group's revenues and building materials 10%.

Earnings per share for the quarter rose to AED0.03 per share compared to a pre-merger loss of AED0.014 per share in the same period last year. The Group's net profit for the first six months of 2022 was AED280 million compared to a pre-merger loss of AED23 million in the first half of 2021, while revenues rose to AED4.61 billion versus AED418 million in the same time frame.

During the first half of 2022, the Group enhanced the efficiency of its plants and put in place a process of prudent raw materials inventory management and maintained finished product volumes at low levels to take advantage of and manage the risks associated