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 137 million ($15.43 million), compared to the net loss of EGP 136 million in the first quarter of the previous year. The company's sales revenues in the first quarter amounted to EGP 4.96 billion ($559.36 million), rising four percent year on year. In the same quarter, in the local market, long steel prices were down four percent, with flat steel prices decreasing by 19 percent, while long export prices fell six percent and flat export prices were down 27 percent, all year on year.
In the first quarter this year, Ezz Steel's consolidated sales, in terms of volume, totaled 1.19 million mt, increasing 10 percent year on year. In the given period, Ezz Steel's long steel production volume amounted to 842,000 mt, up nine percent, while its flat steel production volume decreased by 22 percent to 199,000 mt, both year on year.
Ezz Steel’s managing director Paul Chekaiban stated that the company registered a negative result in the first quarter of the current year in line with the ongoing weakness of the international steel markets and with the erratic volatility of the Egyptian financial environment. However, there was an improvement of the company’s average overall operating margin and a rebalancing of its operating margin across the business units, Mr. Chekaiban added.