DUBAI: Emirates Steel Arkan, a leading integrated steel producer in the United Arab Emirates, has announced robust financial results for the first half of 2024, showcasing resilience amidst challenging market conditions.
Despite a slowdown in the Chinese economy and global geopolitical uncertainties that pressured international steel markets, the Group maintained a stable performance, recording revenues of AED3.96 billion and EBITDA of AED503 million.
This reflects the Group’s commitment to operational excellence and its ability to adapt to evolving market dynamics.
The Group’s strategic flexibility was evident in its ability to maintain production volumes in line with first half of 2023 by redirecting a portion of its international exports to the domestic UAE market.
While total revenues were slightly below first half of 2023 figures, reaching AED3.96 billion, the Group’s EBITDA remained strong at AED503 million.
This was largely attributed to a robust cost reduction and transformation program that contributed an incremental EBITDA enhancement of AED78 million.
Improved cash position
The Steel division generated AED3.60 billion in revenue, while the Building Materials division contributed AED353 million.
The Group’s strong financial performance is further underscored by its improved cash position. As of the end of first half of 2024, Emirates Steel Arkan held AED610 million in cash, a significant increase from AED426 million as of 31 December 2023. This demonstrates the Group’s commitment to financial stability and its ability to navigate market fluctuations.
Emirates Steel Arkan’s commitment to sustainability and innovation was further cemented during first half of 2024. The Group was recognized as the 2024 Steel Sustainability Champion by the World Steel Association for its pioneering efforts in decarbonising steel production throughout 2023.
The accolade was further amplified by the World Economic Forum, which acknowledged the Group’s outstanding efforts in decarbonising the iron and steel industry, placing Emirates Steel Arkan among the top five leading steel companies worldwide in this regard.
Transformative initiatives
The Group’s contributions to the UAE’s industrial sector were also recognised at the Make it in the Emirates Awards 2024. The Group received two prestigious awards: the Best Sustainable Manufacturing Award and the ICV Excellence Award, demonstrating its dedication to sustainable practices and local economic development. Additionally,
Saeed Ghumran Al Remeithi, Director and Group Chief Executive Officer, Emirates Steel Arkan, highlighted the Group’s exceptional resilience and strategic vision in navigating challenging market conditions.
He emphasised the unwavering commitment to operational excellence and innovation, which were instrumental in achieving the strong first-half results.
Al Remeithi also stressed the Group’s focus on cost reduction and transformative initiatives, which have been pivotal in maintaining its competitive edge.
Looking ahead, Emirates Steel Arkan remains vigilant in monitoring market dynamics to stay agile and adaptable. The Group will continue to collaborate with downstream customers to meet their needs for value-added and low-carbon products.
Furthermore, it remains committed to supplying premium steel products, known for their sustainability, record-setting low carbon emissions, and exceptional durability, to landmark projects in the region, as exemplified by its recent agreement with Eversendai for the construction of the NEOM Trojena Ski Village.
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