Emirates Steel Arkan Q2 profits rise to $56.36mln

Emirates Steel Arkan Q2 profits rise to $56.36mln

Emirates Steel Arkan today reported a net profit of AED207 million ($56.36 million) in the second quarter of this year compared to a pre-merger loss of AED24 million in the same period of last year.

The figure was a 184% increase 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. 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 with increasing price volatility.

In addition, the group's balance sheet improved at