Reuters reported that Egyptian group Ezzsteel 2010 consolidated net profit almost tripled buoyed by strong domestic demand for long products and the restart of a flat steel plant. Net profit for 2010 was EGP 252 million while net sales rose 32% and EBITDA increased 29%.

Ezzsteel said that flat steel production jumped 49% to 1.46 million tonnes because of the restart of production at its EFS unit. Demand for long steel was underpinned by strength in housing and infrastructure last year.

Ezzsteel shares have tumbled this year as its founder Mr Ahmed Ezz a political ally of deposed President Mr Hosni Mubarak battles corruption charges from prison. The charges levelled against Ezz centre on the company's dominant role in the local steel market and the terms of its purchase of its Ezz Dekhaila unit.

The company, which replaced Mr Ezz as chairman in May said that it had suffered minor disruption and slowed production volume due to the political and economic turmoil that followed Mubarak's overthrow in February. Nevertheless, it reported higher volumes in the H1 of 2011.

It said that we are confident that Ezzsteel's business model together with the expansion projects which are already progressing will once again deliver even more compelling results when the Egyptian economy recovers and a more stable political environment returns.

The company in July reported 53% decline in unconsolidated 2010 net profit, which did not include results of high performing businesses such as Ezz Dekhaila. Events in Egypt had forced it to delay construction of a direct reduced iron project but banks were providing necessary funds and it hoped the unit would begin operations in the second half of 2012.

(Sourced from Reuters)