Emirates Steel Arkan, listed on the Abu Dhabi Stock Exchange, announced net profit growth to 508.5 million dirhams in 2022 thanks to strong demand from international customers and the steps taken by the group to enhance the efficiency of its operational operations following the successful merger between Emirates Steel and Arkan Building Materials in the quarter The last of 2021.
According to the company’s statement, which Namazon received a copy of, today, Monday, the group’s net profit for the entire year 2022 amounted to 508.5 million dirhams, compared to an initial loss before the merger of 636.7 million dirhams in the fiscal year 2021, supported by the group’s expansion of its international export markets by 25% to 70 countries compared to 56 countries in 2021.
The group’s revenues increased during the fiscal year 2022 to 9.5 billion dirhams, compared to initial revenues of 8.6 billion dirhams during the fiscal year 2021. EBITDA rose to 1.16 billion dirhams, an annual increase of 51% compared to 770 million dirhams in fiscal 2021.
In addition, the group's net profit during the last quarter of last year amounted to 125 million dirhams, compared to losses in the cost of impairment provisions that amounted to 518 million dirhams during the last quarter of 2021. During the last quarter of 2022, the group achieved revenues of 2.3 billion dirhams, compared to 2.4 billion dirhams. billion dirhams during the last quarter of 2021, while its profits before interest, taxes, depreciation and amortization amounted to 300 million dirhams, reflecting continuous growth compared to 269 million dirhams that the group had achieved in the third quarter of 2022.
The Namaa program for transformation and cost reduction, which the group launched in 2021, continued its pivotal role in achieving positive gains. During the year 2022, the initiatives related to this program contributed to adding 400 million dirhams to the group's profits before interest, taxes, depreciation and amortization. The group achieved a significant decrease in the volume of its net bank loans during the past year as a result of the improvement in profitability and the strict policy it followed in managing working capital. As a result, the group's net bank loans decreased by 52% at the end of December 31, 2022, to a total of 1.1 billion dirhams, compared to 2.3 billion dirhams at the end of December 31, 2021.
On this occasion; Hamad Abdullah Mohammed Al Shurafa Al Hammadi, Chairman of the Board of Directors of Emirates Arkan Steel Company, said: The group’s results during its first year showed the great value achieved after the merger between Emirates Steel and Arkan, which contributed to the establishment of a leading national company for the production of iron and building materials capable of competing globally. Despite the challenges that have been negatively reflected in the global economic system, the strong demand for our high-quality products is strong evidence of consumer confidence, and is also strong evidence of the high demand for products that bear the “Made in the Emirates” label.
Al-Hammadi continued: The group contributes to supporting the national strategy for industry through the “300 billion project”, which aims to achieve the highest levels of economic diversification of the country. We are pleased with our role in advancing development and supporting the growth of the national economy, which is expected to achieve faster growth rates compared to the global economy during the current year, which will provide us with broader horizons of new opportunities.
For his part, Saeed Ghamran Al Rumaithi, CEO of Emirates Arkan Steel Group, said: 2022 was a pivotal year for the growth of the Emirates Arkan Steel Group, although it was recently established, and we are proud of the fruits of our strenuous efforts and strict commitment to increasing production rates and reducing costs. We even succeeded in achieving many production targets without compromising our keenness to follow strict health and safety protocols and procedures in all our facilities and facilities.
Al-Rumaithi added, “As we move forward in 2023, we will continue our relentless endeavors towards achieving great value for our shareholders’ investments by expanding our business and activities regionally and internationally, developing a broader range of quality products, including environmentally friendly iron products, and increasing the use of scrap as a raw material in manufacturing units. We are also studying flat steel production options in line with our strategy to diversify our customer base and attract manufacturing customers to our existing strong base of construction companies. And based on our strong financial position and the additional savings that we expect to achieve during the current year, we will be able to continue seizing the best emerging opportunities, which will give us greater impetus and confidence to continue implementing our expansion plans.
During the past year, the Emirates Steel Arkan Group has made great progress in formulating a comprehensive road map to achieve climate neutrality, and this came after announcing the appointment of a global consulting firm specialized in the field of sustainability, as the group continues to cooperate closely with its advisors to ensure that its plan is fully compatible with the goals of neutrality. climate change adopted by the UAE to reduce carbon emissions.
