Emsteel delivers $2.26bn in revenue for 2024
Emsteel, one of the largest publicly traded steel and building materials manufacturers in the region, has delivered total revenues of AED8.3 billion ($2.26 billion) for financial year 2024, approximately 6% lower than the AED8.9 billion reported for 2023.
This decrease in revenue is due to various factors, including fluctuations in global steel prices, increased competition, and changing demand trends driven by economic uncertainties in key markets, the company said.
Despite the challenging market environment Emsteel realised a solid profit before tax of AED432 million and a net profit after tax of AED392 million. The net profit was supported by the reversal of an impairment taken during Covid, with a net positive impact of AED189 million.
Financial highlights for 2024:
• During 2024, Emsteel maintained overall steel production volumes in line with the level attained during 2023.
• Emsteel's profitability margins have been affected by an increase in low-priced Chinese steel exports, which have directly or indirectly impacted prices in several of the group's key markets, including the GCC and important export destinations like Europe and the US.
* The group further strengthened its balance sheet, realising a positive net cash generation of AED401 million resulting in a balance sheet free of net debt.
• In 2024, Emsteel recorded EBITDA of AED892 million, with a margin of 10.9%, compared to 14.2% in 2023. Emsteel's FY24 profitability was supported by a significant improvement of the group's EBITDA during the fourth quarter of the year, amounting to AED247 million, up 81% compared to the third quarter of 2024. One of the key factors was Emsteel's ability to leverage increased UAE construction activity, which supported rebar demand and allowed the group to maximise capacity utilisation, while at the same time improving price realisation in this core segment.
• Revenue from the group's Emirates Steel division totalled AED7.6 billion during 2024, generating an EBITDA of AED680 million. Emirates Steel's performance was impacted by adverse global market conditions.
• Revenue from the group's Emirates Cement division was AED0.8 billion in 2024, with an EBITDA of AED212 million. Within the Cement division the Pipes & Other segment is reported as assets held for sale as a divestment process is ongoing. Revenue for this segment amounted to AED156 million in 2024.
• As of the end of 2024, the group continues to maintain a robust liquidity position, with AED823 million cash in hand compared to AED426 million as of 31 December 2023.
Hamad Al Hammadi, Chairman, Emsteel, said: '2024 has been a year of transformation for Emsteel. With the evolution of our corporate identity and our key business divisions, our team has demonstrated exceptional adaptability and focus, enabling us to deliver innovative solutions and services, and to continue creating value for our stakeholders. These efforts reaffirm our vision to lead the industry toward a low-carbon future while strengthening our position as the UAE's largest publicly traded steel and building materials manufacturer.'
Eng Saeed Ghumran Al Remeithi, Group Chief Executive Officer, Emsteel, said: 'In 2024, Emsteel demonstrated resilience in navigating a dynamic and challenging market environment. Despite these headwinds, we remain committed to innovation, sustainability and accelerating the adoption of low-carbon solutions. A key milestone is our pilot green hydrogen project with Masdar, a critical step in decarbonising this hard-to-abate sector.
"Looking ahead, we embrace our role as pioneers in sustainable innovation, laying the foundation for a low-carbon iron hub, with strategic partnerships driving our vision of a more sustainable and resilient future for all. The UAE's expanding construction sector, with $772 billion in ongoing and upcoming projects, further strengthens our growth strategy. With 52% of projects in planning, design, or tender stages, the country's infrastructure boom will continue to drive demand for sustainable steel and building material solutions, positioning Emsteel as a key enabler of economic and developmental progress.' -
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