Ezz Steel ends 2023 in the red despite a jump in revenues: Steel giant Ezz Steel turned to losses in 2023 driven by FX exchange losses and falling domestic demand. The company reported net losses of EGP 717 mn for the year, compared to net income of EGP 6.6 bn in 2022, the company said in its latest financialreport. Revenues increased 70% y-o-y to EGP 143 bn for the same period, up from EGP 84 bn in 2022.

Exports almost doubled in 2023: Ezz Steel’s exports reached a record USD 1.6 bn in 2023 —the highest in Egypt’s history for a manufacturing company and almost double 2022’s USD 797 mn. The jump in exports was driven by hot rolled coil and reinforcing steel products. Meanwhile, domestic sales of both products fell y-o-y as Ezz Steel shifted its focus towards exports in 2023.

FX complications drove losses: Ezz Steel recorded FX losses of EGP 30.9 bn in 2023, half of which were the result of arranging “the foreign currency component including the short-term USD banks’ and suppliers’ facilities,” the statement said. The company raised the local prices of HRC and reinforcing steel to absorb the losses.

But things are looking up post float: After a nation-wide decline in the construction industry in 2023, Ezz Steel sees national projects and real estate developments picking up in 2024 following the float of the EGP and the availability of FX through the banking system. Likewise, contrary to the previous year, Ezz Steel has already slashed the prices of its local rebar twice this year on the back of a strengthening EGP. The company expects the EGP to strengthen further and has penciled in the USD falling to EGP 45, according to unconfirmed media reports.

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