Emirates Steel Arkan, the largest public steel and building materials business in the UAE, reported a significant rise in its fourth-quarter net profit as cost efficiencies and higher sales drove income.
Net income for the three months to the end of December reached Dh125 million ($34 million), compared with an impairment charge-driven loss of Dh518 million in the same period in 2021, the company said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue stood at Dh2.3 billion, slightly lower than the Dh2.4 billion reported in the same quarter in 2021.
The company, formed after the merger of Emirates Steel and Arkan Building Materials in 2021, also reported that full-year net profit for 2022 rose to Dh508.45 million.
That compares with a pre-merger performa loss [non recurring losses, costs and expenditures such as restructuring costs] of Dh6.36 billion in 2021, Emirates Steel Arkan said in a filing on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue for the 12 months ended December rose 10 per cent to Dh9.5 billion in 2022, from Dh8.6 billion in the previous year.
“We were able to deliver a strong financial performance for the full year [in] 2022 despite the transformation we have been going through following the merger,” group chief executive Saeed Al Remeithi told The National.
“Despite [it] being a bumpy year, in terms of global economic headwinds and the lingering impact of Covid-19 pandemic on many economies, we have been able to report strong revenues and profits.”
The group’s full-year earnings before interest, taxes, depreciation and amortisation rose 51 per cent to Dh1.16 billion.
The company attributed the turnaround in profit to strong international demand and the steps taken by the group to enhance operational efficiencies following the merger.
“The first full-year results of the group clearly demonstrate the value of combining Emirates Steel and Arkan, which has created a UAE steel and building materials champion that is globally competitive,” chairman Hamad Al Hammadi said.
“Despite the global economic headwinds, the increasing reach of our products is testament to consumers’ trust and preference for ‘Made in UAE’ products.”
The company's Namaa cost reduction and transformation programme, launched in 2021, contributed about Dh400 million to the group’s ebitda, the company said.
Chief financial officer Stephen Pope said tight working capital control and inventory management helped the company to achieve “significant cost efficiencies” to reduce its debt ratio.
“We have been going through very uncertain times. Thus, it was important for us to keep a tight check on inventories to reduce pricing risks. We are operating in challenging times, in terms of credit risks from our customers. So, tight controls on receivables are important to us,” he said.
Due to “increased profitability and strict working capital controls”, Emirates Steel Arkan's net bank borrowings fell 52 per cent to Dh1.1 billion as of December 31, 2022.
Despite global economic headwinds, the company is confident of robust expansion in sales and revenue during the current year.
The group grew its international export footprint by 25 per cent to 70 countries last year, from 56 in 2021.
“Most of the global markets where we export have big scope for further expansion,” said Mr Al Remeithi.
“In addition, the UAE, GCC and the wider Middle East economies are growing at a rapid pace. Despite a forecast of [a] slowdown in many global markets, the GCC’s outlook remains robust and that should drive our sales and revenue growth in the current year.”
To expand its customer base and product reach to more markets, Emirates Steel Arkan is diversifying its products to suit demand dynamics, he said.
The company is expanding its sheet pile range, including the development of a range of U-shape piles that are widely used in the construction industry.
We have been going through very uncertain times. Thus, it was important for us to keep a tight check on inventories to reduce pricing risks
Emirates Steel Arkan's chief financial officer Stephen Pope
It is also studying options for the production of flat steel as part of its strategy to diversify its client base and increase the number of its manufacturing industry customers.
During the third quarter of last year, the group entered into a partnership with Itochu Corporation and JFE Steel Corporation to study the construction of a ferrous raw material production plant in Abu Dhabi.
“In 2022, we were focused on expanding our export market footprint and adding more value-added products to our portfolio. Clearly, there has been strong growth in demand for low-carbon steel from our key export markets,” he said.
The company is developing environmentally friendly steel and increasing the use of scrap in its plants as part of efforts to make its products attractive to “environmentally sensitive customers”.
“The group is working closely with our advisers to ensure its net-zero plan is fully aligned to the UAE’s carbon-reduction targets and our targets for exporting low-carbon steel,” Mr Al Remeithi said.
The UAE aims to become carbon neutral by 2050 with new investments worth Dh600 billion planned in clean and renewable energy sources over the next three decades.
UAE companies are taking steps to reduce emissions in line with the national strategy.
Sweet%20Tooth
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Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
UAE currency: the story behind the money in your pockets
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
57%20Seconds
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'Gold'
Director:Anthony Hayes
Stars:Zaf Efron, Anthony Hayes
Rating:3/5
Mohammed bin Zayed Majlis
TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%209
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UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
Yahya Al Ghassani's bio
Date of birth: April 18, 1998
Playing position: Winger
Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda
If you go
Flights
Emirates flies from Dubai to Phnom Penh with a stop in Yangon from Dh3,075, and Etihad flies from Abu Dhabi to Phnom Penh with its partner Bangkok Airlines from Dh2,763. These trips take about nine hours each and both include taxes. From there, a road transfer takes at least four hours; airlines including KC Airlines (www.kcairlines.com) offer quick connecting flights from Phnom Penh to Sihanoukville from about $100 (Dh367) return including taxes. Air Asia, Malindo Air and Malaysian Airlines fly direct from Kuala Lumpur to Sihanoukville from $54 each way. Next year, direct flights are due to launch between Bangkok and Sihanoukville, which will cut the journey time by a third.
The stay
Rooms at Alila Villas Koh Russey (www.alilahotels.com/ kohrussey) cost from $385 per night including taxes.
Fighting with My Family
Director: Stephen Merchant
Stars: Dwayne Johnson, Nick Frost, Lena Headey, Florence Pugh, Thomas Whilley, Tori Ellen Ross, Jack Lowden, Olivia Bernstone, Elroy Powell
Four stars
Sholto Byrnes on Myanmar politics
SUZUME
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Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
'Shakuntala Devi'
Starring: Vidya Balan, Sanya Malhotra
Director: Anu Menon
Rating: Three out of five stars
COMPANY%20PROFILE
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RACE CARD
6.30pm Maiden Dh165,000 (Dirt) 1,200
7.05pm Handicap Dh165,000 (D) 1,600m
7.40pm Maiden Dh165,000 (D) 1,600m
8.15pm Handicap Dh190,000 (D) 1,600m
8.50pm Handicap Dh175,000 (D) 1,400m
9.25pm Handicap Dh175,000 (D) 2,000m
The National selections:
6.30pm Underwriter
7.05pm Rayig
7.40pm Torno Subito
8.15pm Talento Puma
8.50pm Etisalat
9.25pm Gundogdu
UAE currency: the story behind the money in your pockets
Plan to boost public schools
A major shake-up of government-run schools was rolled out across the country in 2017. Known as the Emirati School Model, it placed more emphasis on maths and science while also adding practical skills to the curriculum.
It was accompanied by the promise of a Dh5 billion investment, over six years, to pay for state-of-the-art infrastructure improvements.
Aspects of the school model will be extended to international private schools, the education minister has previously suggested.
Recent developments have also included the introduction of moral education - which public and private schools both must teach - along with reform of the exams system and tougher teacher licensing requirements.
