ABU DHABI - Emirates Steel Arkan today announced its third-quarter results, noting that revenues rose 29% to AED2.51 billion. The Group's Q3 2022 EBITDA gained 224% year-on-year (YoY) to AED269 million.

The Group reported a net profit of AED103 million in the third quarter. The gains were driven by the Group's strategy to diversify revenues through increased exports to over 70 markets, prudent cost control and an increase in operational efficiencies.

Revenues for the first nine months of 2022 rose to AED7.12 billion. The Group reported EBITDA of AED863 million. Net profit in the first nine months of 2022 was AED383 million.

Following the merger, in the final quarter of 2021, the Group's steel business contributed 90% of revenues while building materials comprised 10%. Revenue from the steel business during 9M22 rose to AED6.45 billion.

On a stand-alone basis, the building materials business continued to perform robustly amid pro-active marketing campaigns, higher prices and enhancements to the Group's low-cost production base. The division produced a 9 months net profit of AED48.9 million.

The Group's balance sheet also significantly improved at the end of the nine months, reflecting the success of the Group's "Namaa" cost reduction and transformation programme and the enhanced volume of sales and price increases during the period. Net borrowings decreased 41% to AED1.34 billion as of 30th September 2022.

Hamad A. AlHammadi, Chairman of Emirates Steel Arkan, said, "The Group's robust third-quarter earnings demonstrate the success of its strategy of focusing on new opportunities in its 70 international export markets. The Group also remains committed to its home market and supporting Abu Dhabi's Industrial Strategy. To that end, it is accelerating efforts to aid local industries' growth and enhance the 'Make it in the Emirates' brand and is studying options for producing flat steel for manufacturing industry customers."

Saeed Ghumran Alremeithi, Group Chief Executive Officer, Emirates Steel Arkan, said, "As we celebrate the first anniversary of the merger, the Group continues to take initiatives to enhance output and reduce costs, while ensuring rigorous health and safety protocols across our operations. These measures have enabled us to continue strengthening the financial position of the Group, as reflected in our higher year-on-year profitability and significantly lower level of debt. Our solid financial position gives us increased confidence to execute our growth strategy as we introduce new products and implement our expansion plans."