Egypt's largest steelmaker
Ezz Steel has announced its financial results for 2014, reporting a net loss of EGP 697 million ($91.7 million), compared to a net profit of EGP 130 million in the previous year. The company's sales revenues in the given period amounted to EGP 19.4 billion ($2.55 billion), falling nine percent year on year. Long steel prices were up 1.3 percent, with flat steel prices increased by 2.7 percent year on year.
During 2014,
Ezz Steel's sales, in terms of volume, totaled 4.3 million mt, declining nine percent year on year. In the given period,
Ezz Steel's long steel production volume amounted to 3.6 million mt, falling three percent, while its flat steel production volume decreased by 20 percent to 790,000 mt, both year on year. The company said that at EZDK the continuing shortage of natural gas impacted direct reduced iron (DRI) production, forcing the company to use more expensive scrap and thereby suppressing its margins.
Ezz Steel stated that the expected start of production of the company's new direct reduction plant in Suez by the end of the year will make a significant contribution to its future performance.