The Emirates Steel Arkan Group achieved a profit of 207 million dirhams in the second quarter of this year, compared to losses before the merger of 24 million dirhams for the same period last year, with a growth of 184% compared to the net profit of the first quarter of 2022, which amounted to 73 million dirhams.
The company said in a statement, seen by Namazon, today, Tuesday, that this increase in profits is due to the increase in the volume of sales and the increase in prices, as well as the improvement in the efficiency of operational processes and the favorable conditions in the commodity market.
Group revenues increased to 2.57 billion dirhams in the second quarter, compared to 195 million dirhams for the same period last year. Emirates Steel contributed 90% of the group's revenues, while Arkan contributed 10% of it.
The group's net profit amounted to 280 million dirhams for the first six months of 2022, compared to a pre-merger loss of 23 million dirhams in the first half of last year, while revenues for the first half rose to 4.61 billion dirhams, compared to 418 million dirhams for the same period last year.
During the first half of 2022, the group succeeded in enhancing the efficiency of the performance of its factories and adopted a wise approach in managing the stock of raw materials while maintaining low levels of finished products quantities to benefit from the increase in prices and to manage the risks associated with their fluctuations.
Moreover, the group’s balance sheet at the end of the first half witnessed a remarkable improvement, one of its most prominent features was the decrease in the volume of bank loans, which was positively reflected on the net debt to equity ratio, which declined to 21% at the end of June, compared to 32% at the end of December 2021.
