Ezz Steel, an Egyptian steel company, reported a sharp drop in revenues driven by a sustained fall in steel prices and an increase in iron ore pellets.
In the six months ended June 30, 2019, the company's EBITDA declined 81% to 659 million Egyptian pounds (EGP), while sales rose 2% to 25.9 billion EGP. This increase in sales was driven by an 8% increase in bar steel sales, which was partially offset by a 16% decline in flat steel sales.
Long steel production volumes amounted to 1.9 million tonnes in the first half of 2019, which is 10% more than a year earlier. Production of flat products decreased by 7% to 609,000 tonnes during this period, compared with 652,000 tonnes a year earlier.
The Egyptian Ministry of Trade and Industry on Monday imposed temporary protective duties on steel billets at a rate of 16%, but not less than $ 74 /t, for a period of three years, and 25% on rebar and wire rod.
Ezz Steel is the largest steel company in Egypt, the Middle East and North Africa. Ezz Steel is headquartered in Four Seasons Nile Plaza, Garden City, Greater Cairo. Ezz Steel is listed on the Egyptian stock exchange under the ticker "ESRS ".
