UAE’s Emirates Steel Arkan posts $76.4m in H1 profit

UAE’s Emirates Steel Arkan posts $76.4m in H1 profit

Image credit:WAM

UAE steel and building materials manufacturer Emirates Steel Arkan reported $76.4m (Dhs280.5m) in first-half net profit compared to Dhs279.9m a year ago, driven by the continued improvement of revenues and profits from the building materials division.

The robust profitability in the first half of 2023 is associated with continued high demand for the company’s steel products, and stable margins despite reductions in commodity steel prices, supported by a continuing increase in the manufacture and sale of value-added products, Emirates Steel said in a bourse filing.

The group’s revenues in the first six months of 2023 dropped to Dhs4.43bn from Dhs4.61bn during the same period in 2022 due to a global supply-demand imbalance that temporarily pushed up the sales prices for the group’s products last year.

The company’s steel division’s revenues reached Dhs3.95bn in H1 2023 and it reported a profit of Dhs225m.

#EmiratesSteelArkan’s continuous focus on innovation, sustainability, and efficiency has resulted in a solid performance throughout the first half of 2023. Learn more about our financial results through this video pic.twitter.com/kUIdEbxaOw

— Emirates Steel Arkan (@EMSteelArkan) August 1, 2023

Similarly, the building materials division’s revenues in the first half of 2023 reached Dhs475.8m, up 9 per cent year-on-year while the division’s profit more