Emirates Steel Arkan (ESA), the largest local steel producer and market leader in the United Arab Emirates (UAE), has announced its preliminary financial results for 2023.
In the given year, the company reported a net profit of AED 601.9 million ($165.85 million), compared to a net profit of AED 510.2 million in 2022, while its total sales revenues came to AED 8.9 billion ($2.42 billion), lower than the previous year amid the reductions in commodity prices and a challenging global economic landscape and its impact on commodity prices. In addition, the company’s sales revenues from its steel division increased to AED 8.03 billion ($2.18 billion), driven by the successful launch of new value-added products for both the domestic and export markets and by growth in construction activities in the UAE.
In 2023, ESA’s EBITDA was AED 1.26 billion ($343.09 million), rising by eight percent year on year, while its EBITDA margin came to 14.2 percent, compared to 12.4 percent recorded in 2022.
The combined business experienced a record-breaking fourth quarter in 2023, achieving an EBITDA of AED 379.7 million, rising by 23 percent year on year, while its EBITDA margin grew from 13.2 percent in the fourth quarter 2022 to 15.7 percent in the given quarter in 2023. This growth was driven by enhanced steel sales in the UAE and a sustained improvement in the profitability of the building materials division.
The company said it continues to build the foundations for a new low-carbon emission iron hub together with Abu Dhabi Department of Economic Development, AD Ports Group, ITOCHU and JFE Steel through related memorandums of understanding.
“The group’s robust performance in 2023 demonstrates our resilience and efficiency amidst challenging market conditions. We remain confident in sustaining competitiveness, seizing growth opportunities, and delivering substantial value for our shareholders,” Hamad Al Hammadi, chairman of Emirates Steel Arkan, said.
