Rising freight costs impact Emirates Steel Arkan profit

Rising freight costs impact Emirates Steel Arkan profit

Emirates Steel Arkan reported a net profit of AED128 million ($35 million) in the first quarter of 2024, down 16 percent year on year, due to elevated freight costs on the back of regional geopolitical challenges. Revenue at the Abu Dhabi-headquartered company for the three months to March 2023 fell 12.5 percent to AED2.1 billion […]Emirates Steel Arkan reported a net profit of AED128 million ($35 million) in the first quarter of 2024, down 16 percent year on year, due to elevated freight costs on the back of regional geopolitical challenges.

Revenue at the Abu Dhabi-headquartered company for the three months to March 2023 fell 12.5 percent to AED2.1 billion from AED2.4 billion a year ago despite a challenging and volatile global economic landscape and its impact on commodity prices.

A strong UAE domestic mark supported the company’s performance during the quarter, but exports faced challenges amid tough market conditions. 

In Q1 2024, global commodity steel prices were negatively affected by a slowdown in the Chinese economy and a lack of investor confidence in Europe. 

Revenue from the steel division reached just under AED2 billion during the first quarter, generating a profit of AED86 million. Revenue from the building materials division stood at AED187