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Ezz Steel records EGP 4.2bn losses in 9M 2019 as demand decreases - Daily News Egypt

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Ezz Steel records EGP 4.2bn losses in 9M 2019 as demand decreases

Company saw increase in rebar production by 1% to 2.55m tonnes until end of September 2019


The consolidated financial statements of Ezz Steel showed a net loss of over EGP 4bn in the first nine months (9M) of last year. The company’s losses increased to EGP 4.321bn in 9M 2019, compared to EGP 326.1m in the same period of 2018.

The company’s sales declined to EGP 35.258bn in 9M 2019, compared to EGP 37.446bn in the comparison period, a decrease of 6%. Ezz Steel’s rebar sales amounted to EGP 26.8bn, representing 76% of total sales. Moreover, the company’s flat steel sales reached EGP 8bn, representing 23% of sales. The flat steel exports accounted for 50% of the company’s total sales.

The rebar sales volume increased by about 9% in 9M 2019, recording 2.66m tonnes, compared to 2.44m tonnes during the comparison period. While, the flat steel sales volume decreased by about 17% to 813,000 tonnes in 9M 2019.

Ezz Steel’s total profits also decreased to EGP 528.6m, compared to EGP 4.64bn in the comparison period.

The cost of sales increased to EGP 34.7 bn in 9M 2019, compared to EGP 32.8 bn in the same period in 2018.

The aggregate indicators at the production level showed that rebar production increased by about 1% in 9M 2019 to 2.55m tonnes, compared to 2.5m tonnes in the comparison period.

Flat steel production decreased by 19% at the end of September 2019 to 888,000 tonnes, compared to 1.1m tonnes in the comparable period.

The company indicated that the available liquidity amounted to about EGP 1.64bn, while net debt reached EGP 28.9bn.

Regarding the results of the third quarter (3Q) of 2019, Ezz Steel recorded losses of EGP 1.9bn in 9M 2019, compared to EGP 474.6m in the comparable period. In 2018 The company’s sales declined to EGP 9.4bn in 3Q of 2019, compared to EGP 11.953bn in the comparable period in 2018.

Topics: Ezz Steel

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