Egypt's largest steelmaker Ezz Steel has announced its financial results for the first half of the current year, reporting a net loss of EGP 1.07 billion ($60.71 million), compared to a net loss of EGP 376 million in the first half of 2016. The company's sales revenues in the given period amounted to EGP 17.91 billion ($1.01 billion), rising by 99 percent year on year.
In the first half, Ezz Steel's sales, in terms of volume, totaled 2.10 million mt, increasing by three percent year on year. In the given period, Ezz Steel's long steel production volume amounted to 1.5 million mt, down eight percent, while its flat steel production volume went up significantly by 85 percent to 670,000 mt, both year on year.
Paul Chekaiban, chairman and managing director of Ezz Steel, stated that, continuing the trend Ezz Steel has seen in the first quarter of this year, it registered a very low rate of utilization of its production capacities during the second quarter of the year. According to Mr. Chekaiban, the reason for this performance is the ongoing shortage in working capital facilities which has prevailed in Egypt since the severe devaluation of the Egyptian currency. As a consequence, Ezz Steel repeated in the second quarter the overall negative bottom line it had generated in the first quarter. As soon as working capital will be made available, Ezz Steel shall increase its total output and take advantage of the expected improvement in the Egyptian and international steel markets, Mr. Chekaiban added.