Emirates Steel Arkan’s 2022 net profit rises to Dhs508.5m

Emirates Steel Arkan, a prominent publicly traded steel and building materials company in the UAE, today announced that its net profit rose to Dhs508.5 million in 2022. The rise in profit was boosted by strong demand from international customers and the steps taken by the Group to enhance operational efficiencies following the merger of Emirates Steel and Arkan in the fourth quarter of 2021.

The Group’s net profit for the full year 2022 was Dhs508.5 million compared to a pro-forma loss of Dhs636.7 million in financial year (FY) 2021, supported by the Group’s expansion of its international export footprint by 25 percent to 70 countries, from 56 in 2021. Revenue for FY22 rose to Dhs9.5 billion, versus pro-forma Dhs8.6 billion in FY21, earnings before interest, taxes, depreciation, and amortization (Ebitda) increased to Dhs1.16 billion, a 51 percent year-on-year advance from pro-forma Dhs770 million in FY21.

In the fourth quarter of 2022, the Group’s net profit amounted to Dhs125 million, compared to an impairment charge driven loss of AED518 million in the fourth quarter (4Q) of 2021. Revenue in 4Q of 22 was Dhs2.3 billion, compared to Dhs2.4 billion in 4Q of 21. The Group’s 4Q of 2022 Ebitda was Dhs300 million, showing a continuing growth on the Dhs269 million achieved in the third quarter (3Q) of 2022.

Hamad A Al Hammadi, Chairman, Emirates Steel Arkan, said, “The first full year results of the Group clearly demonstrate the value of combining Emirates Steel and Arkan, which has created a UAE steel and building materials champion that is globally competitive.”