Emirates Steel Arkan on Tuesday announced its third-quarter results, noting that revenues rose 29 per cent to AED2.51 billion. The Group’s Q3 2022 Ebitda gained 224 per cent year-on-year (YoY) to Dhs269 million.

The Group reported a net profit of Dhs103 million in the third quarter. The gains were driven by the Group’s strategy to diversify revenues through increased exports to over 70 markets, prudent cost control and an increase in operational efficiencies.

Revenues for the first nine months of 2022 rose to Dhs7.12 billion. The Group reported Ebitda of Dhs863 million. Net profit in the first nine months of 2022 was Dhs383 million.

Following the merger, in the final quarter of 2021, the Group’s steel business contributed 90 per cent of revenues while building materials comprised 10 per cent. Revenue from the steel business during 9M22 rose to Dhs6.45 billion.

On a stand-alone basis, the building materials business continued to perform robustly amid pro-active marketing campaigns, higher prices and enhancements to the Group’s low-cost production base. The division produced a 9 months net profit of Dhs48.9 million.

The Group’s balance sheet also significantly improved at the end of the nine months, reflecting the success of the Group’s “Namaa” cost reduction and transformation programme and the enhanced volume of sales and price increases during the period. Net borrowings decreased 41 per cent to Dhs1.34 billion as of 30th September 2022.

WAM