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Egyptian steel manufacturer Ezz Steel has posted EGP2.40 billion ($152.87 million) in profit for the first half of 2021.
Majority-owned by steel magnate Ahmed Ezz, the leading steel manufacturer saw its profit grow from a loss of EGP2.77 billion ($176.43 million) in the first half of 2020 to a profit of EGP2.40 billion ($152.87 million).
The company’s move back into the black came off a double-digit increase in revenues from EGP17.83 billion ($1.14 billion) last year to EGP30.42 billion ($1.94 billion) at the end of the first half of 2021.
Ezz Steel is the largest independent steel producer in the Middle East and North Africa.
It recorded $587 million in exports from its operations during the period under review.
Ezz Steel has a total steel production capacity of 7 million tonnes per year, and manufactures, trades and distributes iron and steel products through its regional subsidiaries. This includes 4.7 million tonnes of long products and 2.3 million tonnes of hot-rolled coil.
Ezz Steel’s EGP2.40 billion in profit in the first half of 2021 came off the back of an increase in global steel demand and consumption, which saw the company’s revenue rise from EGP17.83 billion ($1.14 billion) last year to EGP30.42 billion ($1.94 billion).
The company noted that China led the increase in international steel consumption, which rose to 1,004 million tonnes in the first half of 2021, a significant 14-percent bump compared to last year’s figures.
The growth in consumption gave steel manufacturers the opportunity to increase prices, which empowered Ezz Steel’s profit despite its increased operating costs.
The company’s profit was strengthened by Ezz Steel’s new product, B500WDR high tensile steel penetration.
As of press time, 2:15 PM (UTC), Aug. 9, shares in the leading steel manufacturer on the Egyptian Stock Exchange were trading at EGP15.60 ($0.9934), 2.63-percent higher than its opening price today.
At the current price, the company’s market capitalization is EGP8.47 billion ($539.37 million). The market value of Ezz’s 65.7-percent majority stake in Ezz Steel is EGP5.57 billion ($354.70 million).
