A successful merger jumps the quarterly profits of "Emirates Steel Arkan" to 72.6 million dirhams, and revenues of 2.04 billion dirhams
Emirates Steel Arkan Group announced its financial results for the first quarter of 2022, recording revenues of 2.04 billion dirhams, compared to 233.5 million dirhams in 2021.
The group stated in a statement that the strong profits reflect the size of the positive impact of the merger step witnessed in the last quarter of 2021 between the two companies "Arkan" and "Emirates Steel". The group's net profit amounted to 72.6 million dirhams, compared to 1.2 million dirhams for the same period in 2021. Supported by improved operational performance and increased sales.
The group expected to achieve 90% of the total revenues for the year 2022 from the "Emirates Steel" business, and 10% from the "Arkan" business.
successful integration
Hamad Abdullah Al Shurafa Al Hammadi, Chairman of the Board of Directors of Emirates Steel Group, Arkan, said: “Today we began to see the promising prospects of the successful merger step between (Emirates Steel) and (Arkan), as well as the positive effects of the management changes we made, which are clearly reflected in the results. The strong financial performance achieved by the consolidated group for the first quarter of 2022.”
He continued: «We can say that the management of the group has made great strides in its endeavors to enhance the efficiency of the group and benefit from its full potential.
As the largest national company specialized in building materials, (Emirates Steel Arkan) will play a pivotal role in advancing the industrial development in the country, promoting the unified identity (Made in the Emirates), and supporting the national economy, which is witnessing a continuous process of diversification.”
Operational efficiency
For his part, the CEO of Emirates Steel Arkan, Eng. Saeed Ghamran Al Rumaithi, said that the group's strong financial results confirm the size of the positive impact of the strategic merger process and the organizational changes witnessed in the first quarter.
He added: “Besides improving demand levels and increasing prices, we have achieved gains from improving operational efficiency and applying a proactive approach to sales.
Over the coming quarters, we will work to meet the needs of our wide and growing customer base in the construction and manufacturing sectors by diversifying our innovative product range and enhancing our marketing and sales capabilities.”
Emirates Steel
On a standalone basis, Emirates Steel Company announced recording a net profit of 61.1 million dirhams during the first quarter of 2022, an increase of 265% over the first quarter of 2021.
This strong growth is supported by the increase in exports of rebar, structural sections and panels to areas that include Asia and North America.
Rebar sales increased by 8% to 462,000 metric tons in the first quarter due to increased demand in Asian markets.
Sales of construction sections increased by 104% as a result of improved export sales to North American markets.
"Pillar" units
In turn, Arkan's business units were able to achieve profits in the first quarter, as the company recorded on a standalone basis a net profit of 11.5 million dirhams, an increase of 942% year on year.
The first quarter witnessed the implementation of a program to enhance the organizational structure of the group in order to accelerate the pace of integration, explore new aspects of business unification, and improve the operational efficiency aspects of the group.
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