Emirates Steel Arkan’s 2022 net profit increases to AED508.5 mn, buoyed by strong global sales

Emirates Steel Arkan’s 2022 net profit increases to AED508.5 mn, buoyed by strong global sales

ABU DHABI, 13th February, 2023 (WAM) -- Emirates Steel Arkan, a prominent publicly traded steel and building materials company in the UAE, today announced that its net profit rose to AED 508.5 million in 2022. The rise in profit was boosted by strong demand from international customers and the steps taken by the Group to enhance operational efficiencies following the merger of Emirates Steel and Arkan in the fourth quarter of 2021.

The Group’s net profit for the full year 2022 was AED508.5 million compared to a pro-forma loss of AED636.7 million in financial year (FY) 2021, supported by the Group’s expansion of its international export footprint by 25 percent to 70 countries, from 56 in 2021. Revenue for FY22 rose to AED9.5 billion, versus pro-forma AED8.6 billion in FY21, earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to AED1.16 billion, a 51 percent year-on-year advance from pro-forma AED770 million in FY21.

In the fourth quarter of 2022, the Group’s net profit amounted to AED125 million, compared to an impairment charge driven loss of AED518 million in the fourth quarter (4Q) of 2021. Revenue in 4Q22 was AED2.3 billion, compared to AED2.4 billion in 4Q21. The Group’s 4Q22 EBITDA was AED300