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Emsteel’s income falls 64%: Emirates Steel Arkan (Emsteel) saw its net income fall 64% y-o-y to AED 46.3 mn in 2Q 2024, according to its 1H financial statements (pdf). The company’s revenues also fell 10% y-o-y to AED 1.82 bn in revenues. The company attributed the drop in performance to pressure on international steel markets as a result of geopolitical tensions and a slowdown in the Chinese economy that has impacted both export and domestic markets,” according to its earnings release (pdf).
On a six-month basis, Emsteel’s bottom line dipped 38% y-o-y to AED 174.5 mn in 1H 2024. Revenues were down 11% y-o-y, falling to AED 3.96 bn during the period.
The company was expecting a strong year: “As we look to 2024, our strategic focus revolves around boosting output, reducing costs, and surpassing our production targets. With a robust financial position, reduced debt and a commitment to sustainability, we approach the future with confidence, the company’s Director and Group Chief Executive Officer Saeed Al Remeithi said earlier this year.
Looking ahead, Emsteel plans to “remain vigilant in monitoring market dynamics to
stay agile, continue to collaborate closely with downstream customers to meet their needs for value-added and low-carbon products… [and] maintain [its] commitment to supplying premium steel products, to landmark projects in the region, such as [Emsteel’s] latest agreement with Eversendai for the construction of the NEOM Trojena Ski Village,” said Group CEO Saeed Ghumran Al Remeithi.
ICYMI- Emsteel is already exploring low-carbon products: EmSteel Arkan and Japan’s Itochu Corporation will launch a feasibility study to explore setting up a low-carbon iron processing plant in Abu Dhabi. The project will be in collaboration with Japanese steel manufacturing firm JFE Steel and aims to produce 2.5 mm metric tons of reduced iron annually starting in 2027
