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A mixed 1H for Emirates Steel Arkan: The UAE’s largest steel and building materials company Emirates Steel Arkan reported a slight year-on-year increase in net income in the first half of the year on the back of high demand for its steel products, its earnings release (pdf) and consolidated financial statements (pdf) to the ADX showed. It reported AED 280.5 mn in net income during the first six months of the year, up from AED 279.9 mn in the corresponding period last year. However, its revenues were down 3.9% y-o-y in the first half of the year to AED 4.4 bn.
Leading the growth: Net income from the steel division amounted to AED 224.8 mn during the first half of the year, while its building materials division saw a continued recovery driven by the growth in the UAE construction sector to AED 56 mn from AED 20 mn for the corresponding period last year.
The reasoning: Emirates Steel Arkan said its robust profitability came on the back of a high demand for its steel products, stable margins despite lower commodity steel prices, and the increase in the manufacture and sale of value-added products for both domestic and export markets.
Key highlights during 1H: The leading steel and building materials company said it continued to set up the foundation for a new low-carbon iron supply chain under MoUs signed with Abu Dhabi Department of Economic Development, AD Ports Group, and Japanese ITOCHU and JFE Steel. It also expanded into three markets for steel and was able to export Glass Fibre Reinforced Plastic (GRP) pipes to three projects in France. It also utilized its ES600 innovative low-carbon high tensile rebar steel in two projects in Dubai.
Decarbonization is still a priority: Emirates Steel Arkkan remains committed to meeting its decarbonization and sustainability goals by using clear and renewable energy when possible and entering partnerships with regional and global companies to establish a new low-carbon supply chain in the UAE, Al Remeithi said. The steps come under its efforts to slash its carbon emissions by 40% by 2030 and achieve net zero by 2050, he added.
