Emirates Steel Arkan, the largest public steel and building materials company in the UAE, has reported a net profit of Dh103 million ($28m) for the third quarter.
The company, formed after the merger of Emirates Steel and Arkan Building Materials last year, made the profit for the three-months to the September, compared with a Dh79m loss during the same period last year, it said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Quarterly revenues rose 29 per cent to Dh2.51bn. The group’s earnings before interest, taxes, depreciation and amortisation (Ebitda) gained 224 per cent year-on-year to Dh269m.
Emirates Steel Arkan attributed the turnaround to higher sales volumes, enhanced operational efficiency and a supportive market environment.
“The group has been reporting strong results since the merger, driven by our strategy to diversify revenues through increased exports, cost control and an increase in operational efficiencies,” group chief executive Saeed Alremeithi told The National.
For the nine-month period, the company reported to a net profit of Dh383m compared with a pre-merger loss of Dh119m during the same period last year. Revenue for the January-September period rose about 15 per cent to Dh7.12bn.
The group’s Ebitda for the period rose to Dh863m, a yearly increase of 134 per cent.
Emirates Steel Arkan exports its products to 70 markets. With the UAE economy forecast to maintain robust growth, despite macroeconomic headwinds, the company expects to maintain revenue and profit growth momentum.
“Our steel and building materials businesses have been resilient to market turmoil caused by the war in Ukraine and economic slowdown in various markets. We expect the strong economic growth in the UAE, Middle East and the subcontinent to support our revenue and profit growth,” Mr Alremeithi said.
The group’s steel business contributes 90 per cent of revenue while building materials account for 10 per cent.
Revenue from the steel business during the nine-month period rose to Dh6.45bn with an unconsolidated pre-merger revenue of Dh5.6bn during the same period last year, boosted by strong sales into Europe and the Americas and increased volume of orders in the UAE, the company said.
The building materials business, meanwhile, continued to perform robustly on higher average sale prices and enhancements to the group’s low-cost production base.
The division generated a nine-month net profit of Dh48.9m compared with a loss of Dh29.2m in the same period last year, it said.
During the first nine months of the year, Emirates Steel Arkan significantly reduced its debt burden by bringing down the net debt-to-equity ratio to 21 per cent, from 32 per cent at the end of last year.
The group’s balance sheet also significantly improved with net borrowings declining 41 per cent to Dh1.34bn at the end of September compared with Dh2.28bn as of December 31, 2021.
“Very tight working capital control and inventory management helped us to achieve significant cost efficiencies to reduce our debt ratio,” company's chief financial officer Stephen Pope told The National.
Despite the global economic uncertainty amid a coronavirus resurgence in China, high inflation around the world and elevated energy prices, Emirates Steel Arkan forecasts a more robust outlook for sales and profitability, both in the region and in its export markets.
“Even though the outlook for raw material markets and the global economy remains uncertain, the growth prospects for the UAE are encouraging and our increasingly diversified business model will allow us to take advantage of opportunities as they arise,” Mr Alremeithi said.
To expand the company’s customer base and product reach to more markets, it is undertaking product diversification to suit demand dynamics, he added.
Emirates Steel Arkan is also expanding its sheet pile range, including the development of a range of U-shape piles, widely used in the construction industry.
During the third quarter, the group also partnered with ITOCHU Corporation and JFE Steel Corporation to study the construction of a ferrous raw material production facility in Abu Dhabi.
UAE currency: the story behind the money in your pockets
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE currency: the story behind the money in your pockets
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Capital: Kiev
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A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
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Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
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“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
