Emirates Steel Arkan has posted a net profit of AED72.6 million ($19.62 million) for the first quarter of 2022, compared to AED1.2 million for the same period in 2021.
The company announced revenues of AED2.04 billion for the first quarter of 2022, compared to AED233.5 million in 2021.
The earnings reflect the positive impact of the merger in Q4 2021 of Arkan and Emirates Steel, the company said.
It said the net profit was boosted by enhanced operational performance and higher sales volumes. The Group expects 90 percent of full-year revenues in 2022 to derive from Emirates Steel and 10 percent from the Arkan operations.
Hamad Abdulla Mohamed AlShorafa Alhammadi, Chairman of Emirates Steel Arkan, said, “The foresight of the merger of Emirates Steel and Arkan and the impact of the management changes that we have made are clearly evident in the strong financial metrics that the merged entity has delivered in the first quarter. The Group’s management has made great strides in enhancing efficiency and unlocking the full potential of the combined entity.”
“As the largest building materials company in the UAE, Emirates Steel Arkan will play a key role in accelerating the nation’s industrial development, strengthening the ‘Made in the UAE’ brand and supporting the country’s increasingly diversified economy.”
On a stand-alone basis, Emirates Steel reported a net profit of AED61.1 million during the first quarter, a 265 percent increase on Q1 2021, bolstered by higher exports of rebar, sections and sheet piles to regions including Asia and North America.
Rebar sales rose by 8 percent to 462,000 metric tons in the first quarter due to increased demand in Asian markets.