Emirates Steel Arkan has announced its financial results for the first half of 2024, reporting revenues of 3.96 billion dirhams, a 10% decline from 4.43 billion dirhams in the same period last year. Despite challenging market conditions, including pressures from the international steel market and a slowdown in the Chinese economy, the group maintained stable production levels comparable to the first half of 2023 by reallocating some international exports to the local UAE market.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 503 million dirhams, with a net profit before tax of 191 million dirhams. The Steel Division generated revenues of 3.60 billion dirhams, yielding a profit before tax of 140 million dirhams, while the Building Materials Division reported revenues of 353 million dirhams and profits before tax of 51 million dirhams.
The company's performance reflects its resilience amid difficult market conditions, aided by a cost reduction program that achieved savings of 78 million dirhams. By the end of the first half of 2024, Emirates Steel Arkan improved its cash position to 610 million dirhams, up from 426 million dirhams at the end of 2023.
CEO Saeed Ghumran Al Remeithi emphasized the group's commitment to operational excellence and sustainable innovation, highlighting its recognition by the World Economic Forum for efforts to decarbonize the steel industry. Looking ahead, the group plans to monitor market developments closely and continue supplying premium, low-carbon steel products for significant regional projects, including a recent agreement to provide structural steel beams for the Trojena Ski Village project in NEOM, Saudi Arabia.
