UAE’s largest publicly traded steel and building materials company Emirates Steel Arkan has reported a net profit of AED 207 million (USD 56 million) in April-June 2022 quarter compared to a pre merger loss of AED 24 million in the same period of last year and a 184% gain from AED 73 million in Q1, driven by higher sales volumes and prices, enhanced operational efficiencies, and a supportive commodity market environment. Revenues rose to AED 2.57 billion in Q2 compared to AED 195 million in the corresponding quarter last year. Steel continued to contribute 90% of the Group’s revenues and building materials 10%.Emirates Steel Arkan Chairman Hamad Abdulla Mohamed AlShorafa Alhammadi said “During the second quarter, the management continued the integration of Arkan and Emirates Steel, creating increased opportunities for growth and employment. The strength of the results reflects how the creation of a national steel and building materials champion is supporting the UAE’s efforts to bringing about further economic diversification by nurturing the growth of the nation’s industrial base and increasing the competitiveness of Emirati goods and services in global markets. The measures the Group has taken in H1 to optimize its business will allow us to continue executing our strategy with increased confidence.”The Group’s net profit for the first six months of 2022 was AED 280 million compared to a pre-merger loss of AED 23 million in the first half of 2021 while revenues rose to AED 4.61 billion versus AED 418 million in the same time frame. During the first half of 2022, the Group enhanced the efficiency of its plants and put in place a process of prudent raw materials inventory management and maintained finished product volumes at low levels to take advantage of and manage the risks associated with increasing price volatility.The Group’s steel business reported an EBITDA of AED 524 million in the first half on a stand- alone basis, a substantial jump from AED 246 million in H1 2021. The increase was boosted by strong demand from Europe and the Americas for rebars, sections and sheet piles as the number of export markets increased to 60 from 56. Rebar sales rose by 8% year on year to 904,000 tonnes in the first half. At the same time, first half sheet pile revenue grew by 400% year on year.