Egypt's largest steelmaker Ezz Steel has announced its financial results for 2017, reporting a net loss of EGP 1.58 billion ($89.33 million), compared to a net profit of EGP 162 million in the previous year. The company's sales revenues in 2017 amounted to EGP 41.74 billion ($2.36 billion), rising 80 percent year on year.
Ezz Steel stated that in 2017 prices in Egyptian pounds increased significantly, reflecting the steep devaluation of the Egyptian currency that took place at the end of 2016. In the local market, long steel prices were up 71 percent, with flat steel prices increasing by 95 percent, while both long and flat export prices together rose by an average of 88 percent, all year on year.
In the given year, Ezz Steel's consolidated sales, in terms of volume, totaled 4.5 million mt, rising slightly by three percent year on year. In the period in question, Ezz Steel's long steel production volume amounted to 3.4 million mt, up two percent, while its flat steel production volume increased by 22 percent to 1.15 million mt, both year on year.
The company stated that it was not able to run its plants at full capacity because of an acute shortage of working capital facilities due to the significant devaluation of the Egyptian currency. As a result, its consolidated bottom-line remained negative throughout the year, though it slightly improved quarter by quarter. However, it is confident that the readjustment of its working capital lines will be completed in the coming period, which will enable it to fully benefit from the prevailing favorable conditions in the local and international steel markets.