Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksAl Ezz Gds Regs Regulatory News (AEZD)

Share Price Information for Al Ezz Gds Regs (AEZD)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 2.80
Bid: 0.00
Ask: 0.00
Change: 0.00 (0.00%)
Spread: 0.00 (0.00%)
Open: 2.80
High: 0.00
Low: 0.00
Prev. Close: 2.80
AEZD Live PriceLast checked at -
  • This share is an international stock.

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

EZZSTEEL REPORTS CONSOLIDATED Q1 2017 RESULTS

18 Jul 2017 07:00

RNS Number : 3054L
EZZ Steel Company - S.A.E.
18 July 2017
 

 

 

 

 

EZZSTEEL REPORTS CONSOLIDATED Q1 2017 RESULTS

 

Cairo, 18 July 2017 - ezzsteel (EGX: ESRS; London Stock Exchange: AEZD), the largest independent producer of steel in the MENA region and market leader in Egypt, today announced its consolidated results for the period ending 31 March 2017. The audited results have been prepared in accordance with Egyptian Accounting Standards.

 

Paste the following link into your web browser to download a PDF of the full financial statements related to this announcement:

http://www.rns-pdf.londonstockexchange.com/rns/3054L_-2017-7-17.pdf

 

Key highlights

EGP Mn

 

 

Q1 2016

Q1 2017

YoY % (+/-)

Net sales

4,967

8,113

+63

Gross profit

487

542

+11

EBITDA*

498

616

+24

Net profit before tax and minority interest

(346)

(347)

 

Net profit after tax and minority interest

(137)

(521)

 

Earnings per share**

(0.25)

(0.98)

 

Net debt to equity

2.47x

2.04x

 

 

 

*EBITDA = sales - cost of goods sold - selling & marketing expense - G&A expense + depreciation and amortisation

**EPS = Net profit after tax & Minority Interest / No. of shares at the end of the period

 

Comment

Commenting on the results, Mr Paul Chekaiban, Chairman and Managing Director of ezzsteel, said:

 

"During the first quarter of 2017, ezzsteel suffered from a very low rate of utilization of its production capacities due to an acute shortage in working capital facilities deriving from the significant devaluation of the Egyptian currency. As a consequence, the tonnage of steel produced and sold fell short of absorbing all relevant costs which led to an overall negative bottom line."

 

"In the coming quarters, we expect to gradually cover our working capital gap which will substantially increase our total output and solidly consolidate our path towards a sustained recovery."

 

 

For further information:

 ezzsteel

 

 

Kamel Galal

+20 2 3304 6060

+20 100 539 5499

Ashraf El Ghannam

+20 2 3304 6060

 

Ahmed Saad

+20 2 3304 6060

 

 CNC Communications

 

 

Claire Maloney

+44 20 3219 8803

+44 7770 958 479

Maximilian Karpf

 

+44 20 3817 9937

 

+44 7970 716 953

 

 

About ezzsteel

ezzsteel (formerly: Al Ezz Steel Rebars) is the largest independent steel producer in the Middle East and North Africa, and the Egyptian market leader, with a total actual capacity of 5.8 million tonnes of finished steel.

 

In 2016, the Company produced 3.3 million tonnes of long products (typically used in construction) and 944,000 tonnes of flat products (typically used in consumer / industrial goods). ezzsteel deploys the latest in modern steel-making technology and is committed to further increasing vertical integration across its plants, boosting operational flexibility.

 

Operational Review

 

All of the below financial breakdowns are based on ezzsteel's consolidated financials, which include the financial performance of ESR/ERM, EZDK and EFS.

 

Sales & Production

 

Consolidated net sales for Q1 2017 were EGP 8.1 billion, representing an increase of 63 per cent year on year. The increase in sales was largely due to a 346 per cent increase in flat sales revenues in the first quarter, compared to the same period in 2016. This development was driven by stronger international demand and better export conditions following the effective free float of the Egyptian currency. Additionally, long and flat sales prices grew both in the domestic and export market in the first quarter of 2017. Flat export prices gained the most momentum, reaching EGP 8,000 per ton, up 168 per cent from EGP 3,000 per ton in Q1 2017

 

Sales after elimination

EGP Mn

ESR/ERM

EZDK

EFS

Consolidated

Long

1,723

3,427

109

5,259

Flat

-

1,712

1,040

2,752

Others

-

80

22

102

Total

1,723

5,219

1,171

8,113

 

Long steel products accounted for EGP 5.3 billion, or 65 per cent of sales in Q1 2017, while flat steel products represented 34 per cent of sales at EGP 2.7 billion. Long product exports accounted for 8 per cent of total long sales, up from less than 1 per cent in Q1 2016. Flat product exports accounted for 64 per cent of total flat sales.

 

Sales Value

EGP Mn

Domestic

per cent

Export

per cent

Long

4,843

92%

416

8%

Flat

1,002

36%

1,750

64%

 

Long sales volumes were 673 thousand tonnes during Q1 2017, 34 per cent lower than the 1 million tonnes sold during the same period last year.

 

Flat sales volumes rose by 89 per cent to reach 321 thousand tonnes in Q1 2017, with production having stabilised due to the better export conditions following the effective free float of the Egyptian currency and increased domestic and international demand.

The group's consolidated sales volumes totalled 995 thousand tonnes in Q1 2017, a decrease of 16 per cent from the 1.19 million tonnes sold in Q1 2016.

 

The contributions of ESR/ERM, EZDK and EFS to the consolidated net sales for the period ending 31 March 2017 were 21 per cent, 65 per cent, and 14 per cent respectively.

 

Long steel production volumes totalled 777 thousand tonnes during Q1 2017, down 8 per cent compared to Q1 2016. Flat steel production volumes increased by 107 per cent to 325 thousand tonnes for the period, compared to 157 thousand tonnes in the previous year.

 

Cost of Goods Sold

 

Consolidated Cost of Goods Sold for Q1 2017 represented 93 per cent of sales, reflecting a decrease in gross profit margin from 10 per cent in Q1 2016 to 7 per cent in Q1 2017.

While EZDK managed to improve its COGS/Sales margin by more than 3 per cent to 88 per cent, EFS's Cost of Goods Sold for the first quarter 2017 was at 121 per cent - a similar level as seen in 2015. This reflects the weaker capacity utilisation at the facility.

 

 

Standalone figures

Consolidated

EGPMn

ESR/ERM

EZDK

EFS

ezzsteel

Sales

2,707

5,276

1,174

8,113

COGS

2,580

4,657

1,415

7,572

COGS/Sales

95%

88%

121%

93%

 

Gross profit

 

Gross profit of EGP 542 million was recorded for Q1 2017, an increase of 11 per cent from the EGP

487 million recorded in Q1 2016.

 

EBITDA

 

EBITDA for Q1 2017 amounted to EGP 616 million, representing an increase of 24 per cent from EGP 498 million in Q1 2016.

 

Tax

In Q1 2017, ezzsteel had tax liabilities of EGP 146 million.

 

Net result after tax and minority interests

 

Net result after tax and minority interests recorded a loss of EGP 521 million for Q1 2017.

 

Liquidity and capital resources

 

At the end of the period, ezzsteel had cash on hand of EGP 4.64 billion and net debt of EGP 19.7 billion. The company has a gearing of Net Debt / Equity of 2.04 times.

 

Outlook

 

"In the coming quarters, we expect to gradually cover our working capital gap which will substantially increase our total output and solidly consolidate our path towards a sustained recovery."

 

 

Divisional Overview

 

EZDK

Sales (EGP):

 

Q1 2016

Q1 2017

 

 

Value:

2,731

5,276

Mn

 

Volume:

 

 

 

 

Long:

495,309

446,244

Tonnes

 

Flat:

169,936

197,523

Tonnes

 

Exports as % of Sales:

 

 

 

 

Long:

1

12

 

 

Flat:

28

54

 

 

EBITDA:

252

620

Mn

Production:

 

 

 

 

 

Long Products:

416,549

516,739

Tonnes

 

Flat Products:

155,933

178,136

Tonnes

 

Billets:

408,598

549,948

Tonnes

 

 

 

 

 

ESR/ERM

Sales (EGP):

 

 

 

 

 

Value:

1,464

2,707

Mn

 

Volume:

344,354

225,578

Tonnes

 

Exports as % of Sales:

-

-

 

 

EBITDA:

180

106

Mn

Production:

 

 

 

 

 

Long Products:

284,070

245,277

Tonnes

 

Billets:

71,430

185,530

Tonnes

 

 

 

 

 

EFS

Sales (EGP):

 

 

 

 

 

Value:

780

1,174

Mn

 

Volume:

 

 

 

 

Long:

181,576

14,010

Tonnes

 

Flat:

-

124,180

Tonnes

 

Exports as % of Sales:

 

 

 

 

Long:

-

-

 

 

Flat:

-

89

 

 

EBITDA:

63

(146)

Mn

Production:

 

 

 

 

 

Long Products:

142,367

14,844

Tonnes

 

Flat Products:

1,298

147,354

Tonnes

 

Billets:

128,136

5,367

Tonnes

 

 

- Ends - 

Disclaimer:

This press release is issued by ezzsteel (formerly: Al Ezz Steel Rebars S.A.E.) the "Company", in connection with the disclosure of the Company's financial results for the 3 month period ending 31 March 2017. This press release includes forward-looking statements. These forward looking statements include all matters that are not historical facts. In particular, the statements regarding the Company's strategy, the expected strength of demand for long and flat products in Egypt and in regional and international markets, and other future events or prospects are forward looking statements. Recipients of this document should not place undue reliance on forward looking statements because they involve known and unknown risks, uncertainties and other factors that are in many cases beyond the control of the Company. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance and the Company's actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates may differ materially from those expressed in or implied by the forward-looking statements contained in this document. The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that the Company, or persons acting on its behalf, may issue. Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trends, global and regional trends in the steel industry, the economic and political climate of Egypt and the Middle East and changes in the business strategy of the Company and various other factors. These forward-looking statements reflect the Company's judgment at the date of this document and are not intended to give any assurances as to future results. The Company undertakes no obligation to update these forward-looking statements, and it will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document. None of ezzsteel, any of its directors, officers or employees or any other person can give any assurance regarding the future accuracy of the information set forth herein or as to the actual occurrence of any predicted developments. Furthermore, none of such parties shall assume, and each of them expressly disclaims, any obligation (except as required by law or the rules of the ESE, the LSE or the FCA) to update any forward-looking statements or to conform these forward-looking statements to ezzsteel's actual results.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
QRFOKODQABKDPOD
Date   Source Headline
22nd Mar 20244:35 pmRNSAnnual Financial Report 2022 IFRS
12th Dec 202311:22 amRNS3rd Quarter Results
11th Dec 20234:30 pmRNS3rd Quarter Results
17th Oct 20233:56 pmRNSHalf-year Report
2nd Aug 20233:46 pmRNSSummary of resolutions for EGM
6th Jul 20235:01 pmRNS1st Quarter Results
19th Jun 20237:30 amRNSSuspension - Ezz Steel Company - S.A.E
22nd May 20237:00 amRNSAGM Statement
27th Apr 20232:53 pmRNSOrdinary General Assembly Invitation
3rd Apr 20237:00 amRNSFinal Results
2nd Mar 20239:13 amRNSForex Losses
30th Nov 20224:30 pmRNS3rd Quarter Results
8th Sep 20224:51 pmRNSFirst Half Financial Results 2022
7th Jun 20224:15 pmRNSEzz Steel Production Ranking
6th Jun 20227:00 amRNS1st Quarter Results
27th May 20227:00 amRNSDividend Declaration
3rd Mar 20222:02 pmRNSAnnual Financial Report
26th Jan 20227:00 amRNSAcquisition
13th Dec 20217:00 amRNSStatement re subsidiary investment
15th Nov 20217:00 amRNS3rd Quarter Results
8th Nov 20212:09 pmRNSStatement re Investments
19th Oct 20218:00 amRNSStatement re 9M21 exports
9th Aug 20217:00 amRNSFirst Half 2021 Results
17th Jun 20217:00 amRNSResponse to Investors' Inquiry
16th Jun 20217:00 amRNS1st Quarter Results
7th Jun 20219:54 amRNSExecution of Insider Trading
7th Jun 20218:00 amRNSTransaction in Own Shares
17th May 20213:43 pmRNSExecution of Insider Trading
17th May 20219:56 amRNSTransaction in Own Shares
6th Apr 20217:00 amRNSConsolidated FY 2020 Results - Replacement
1st Apr 20213:10 pmRNSConsolidated FY 2020 Results
25th Jan 20217:00 amRNSPurchase of Treasury Stock
21st Jan 20213:04 pmRNSPurchase of Treasury Stock
20th Jan 20213:05 pmRNSPurchase of Treasury Stock
18th Jan 20217:00 amRNSTreasury Stock Purchasing Period
13th Jan 20211:54 pmRNSPurchase of Treasury Stock
12th Jan 20212:47 pmRNSPurchase of Treasury Stock
11th Jan 20212:24 pmRNSPurchase of Treasury Stock
11th Jan 20217:00 amRNSTreasury Stock
11th Jan 20217:00 amRNSPurchase of Treasury Stock
6th Jan 20213:31 pmRNSBoard of Directors decisions
8th Dec 20207:00 amRNSEZZ STEEL REPORTS CONSOLIDATED 9M 2020 RESULTS
1st Oct 20207:00 amRNSEZZ STEEL REPORTS CONSOLIDATED H1 2020 RESULTS
1st Sep 202012:01 pmRNSDirectorate Change
10th Aug 20207:00 amRNSEZZ STEEL REPORTS CONSOLIDATED Q1 2020 RESULTS
17th Jun 20207:00 amRNSEZZ STEEL REPORTS CONSOLIDATED FY 2019 RESULTS
15th Jun 20209:19 amRNSNotice of Results
2nd Jan 202011:43 amRNSEZZSTEEL REPORTS CONSOLIDATED 9M 2019 RESULTS
2nd Jan 20207:00 amRNSEZZSTEEL REPORTS CONSOLIDATED 9M 2019 RESULTS
30th Dec 20197:00 amRNSSummary of the Unaudited Q3 2019 ESRS Results

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.