Abu Dhabi-based Emirates Steel has achieved Dh7.5 billion ($2.04 billion) in revenue in 2018, an increase of 15 per cent as compared to Dh6.6 billion ($1.8 billion) in 2017.

Emirates Steel is the only integrated steel plant in the UAE, and a subsidiary of the General Holding Corporation (Senaat).

In addition, Emirates Steel has delivered an incredible 44 per cent increase in earnings before interest, tax, depreciation and amortization (EBITDA). EBITDA in 2018 reached Dh1 billion ($272.23 million), as compared to Dh678 million ($184.57 million) in 2017, said a company statement.

Also, Emirates Steel reduced its debt to equity ratio by 9 per cent, from 56 per cent in 2017 to 47 per cent in 2018, it said.

During an annual media briefing held today at Emirates Steel’s headquarters, Engineer Saeed Ghumran Al Remeithi, chief executive officer of Emirates Steel, said: “Despite the challenges faced by the metals and steel industry globally last year, our results for 2018 were positive. I believe this is a testament to the success of our resilient business model and our sustainable growth strategy.”

“With this year on year growth, we are continuing to enhance our position as a world class steel manufacturer adept at delivering the highest quality products, services and comprehensive solutions to our customers,” he said.

Al Remeithi continued: “While we foresee challenges in 2019, including the slowdown of the regional construction sector, surge in iron ore prices, drop in sales prices, market volatility, market protectionism, we remain focused on increasing sales revenues and reducing direct and indirect costs to further improve our financial performance.”

“We are aiming to achieve this through the further development of our product range and by driving efficiencies across the business, focus on customer retention, and customer satisfaction. The success of our strategy and our ability to deliver the highest quality products is increasingly evident through the growing demand for Emirates Steel’s products in international markets,” he added.

In 2018 Emirates Steel’s export sales to more than 40 countries accounted for 20 per cent of total volumes, with the remaining 80 per cent being consumed within the UAE where the company maintains a 60 per cent share of the rebar market and 69 per cent share of the section market. It is worth mentioning that the steel market dropped significantly in second half of 2018, nevertheless the company managed to maintain its sales.

Emirates Steel produced 3.1 million tonnes of finished products in 2018, in line with the volumes achieved in 2017. In the domestic market it sold 2.514 million tonnes of finished products, with exports accounting for the remaining 631,000 tonnes. Emirates Steel’s reinforcing bars production accounts for roughly 2.1 million tonnes of the company’s overall production. In addition, the company manufactured 500,000 tonnes of wire rod and 600,000 tonnes of heavy sections.

In November of 2018, Emirates Steel signed a four-year (2018-2021), high value contract with Vale, the world’s largest producer of iron ore and iron ore pellets, to supply iron ore pellets for its steel production. It has an iron ore pellet requirement of around 6 million tonnes per year, and the four-year contract and strategic partnership with Vale provides the company with a flexible source of iron ore at competitive, stable and long term prices.