Egypt's largest steelmaker Ezz Steel has announced its financial results for the first nine months of 2014, reporting a net loss of EGP 461 million ($60.43 million), compared to a net profit of EGP 217 million in the first nine months of 2013. The company's sales revenues in the given period amounted to EGP 14.9 billion ($1.95 billion), falling seven percent year on year. Long steel prices were up one percent, with flat steel prices remaining flat.
In the first nine months, Ezz Steel's sales, in terms of volume, totaled 3.3 million mt, declining seven percent year on year. In the given period, Ezz Steel's long steel production volume amounted to 2.8 million mt, falling one percent, while its flat steel production volume decreased by 23 percent to 733,786 mt, both year on year.
"Ezz Steel suffered from the negative impact of three main factors; the sudden deterioration of the global steel market, which provoked a surge in the import of dumped steel products into the Egyptian market; the constant disruption of utilities during the summer season, which stopped our production facilities and drastically reduced our total output; the unprecedented increase in energy prices; and the severe shortage of foreign currencies in Egypt, which inflated our manufacturing costs," said Paul Chekaiban, chairman of Ezz Steel.