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Emirates Steel Arkan saw its net income surge 18% y-o-y to AED 601.9 mn (c. USD 164 mn) in FY 2023, according to preliminary financial results (pdf) to the ADX. The company saw its revenues fall 6.32% to AED 8.9 bn in the same period.
On a 4Q basis: Revenues were up 4% y-o-y in the quarter to AED 2.4 bn (c.USD 653.44 mn) in the same period on the back of higher volumes of rebar sales to the domestic market. Net profit in 4Q 2023 rose by 69% y-o-y to AED 215 mn.
Driving the growth: The company attributes its strong financial performance over the year to robust sales of value-added products in both the UAE and international markets, a hike in revenues and profits from its Building Materials division, and increased operational efficiencies and revenue optimisation, it noted.
Sustainability highlights: The company partnered with Masdar to build MENA’s first green steel plant in November, and with US-based developer Ohmium International to establish a green hydrogen-focused research and development program to help decarbonize the sector. It also inkedMoUs signed with Abu Dhabi Department of Economic Development, AD Ports Group to boost decarbonization, and with Japan’s Itochu and JFE to produce low-emission iron material for international export. The steel maker also partnered with climate consulting firm A³&Co. O a project aimed at helping decarbonize its Al Ain Cement factory, it noted in the statement.
Looking ahead: “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, navigating emerging opportunities and actively contributing to positive climate actions in the UAE and beyond,” the company’s Director and Group Chief Executive Officer Saeed Al Remeithi said.
