Egypt's largest steelmaker Ezz Steel has announced its financial results for the first quarter of the current year, reporting a net loss of EGP 67 million ($3.75 million), compared to a net loss of EGP 521 million in the corresponding period of the previous year. The company's sales revenues in the given quarter amounted to EGP 12.6 billion ($705.77 million), rising by 55 percent year on year.
In the first quarter, Ezz Steel's consolidated sales in terms of volume totaled 1.18 million mt, up 18 percent year on year. In the period in question, Ezz Steel's long steel production volume amounted to 857,000 mt, rising by 10 percent, while its flat steel production volume remained almost stable at 326,000 mt, both year on year.
“We managed to increase the volume of our production and of our sales, and we improved our average selling price, which translated into a substantial increment in our global turnover. We finally raised our gross profit margin allowing us to register a quasi-breakeven in our consolidated results,” said Paul Chekaiban, chairman and managing director of Ezz Steel. Mr. Chekaiban added that in the coming periods the pace of growth of the company’s bottom line will be dictated on the one side by the impact on the global steel sector of trade protective measures, and on the other side by the resilience of the Egyptian economy to the international monetary disturbance.