Ezz Steel's losses deepen in 9 months

CAIRO – 14 December 2017: Al-Ezz Steel Company recorded LE 1.39 billion in net loss in the first nine months of 2017, compared to LE 564 million in losses in the same period last year.

In a statement to the Egyptian Exchange, Ezz Steel said that its liquidity stood at LE 5.02 billion, while net debts reached LE 18.9 billion. The debt-to-equity ratio marked 2.15x.

With regards to sales, the steel company sold 3.29 million tons in that period, nearly the same as last year's level of 3.2 million tons. "Net sales valued at LE 29.4 billion, compared to LE 14.92 billion in the first nine months of 2016, with a 97 percent increase," Ezz steel noted.

The company incurred net losses of around LE 521 million in Q1 of 2017 compared to LE 137 million in the same period of the previous year, after deducting taxes and minority rights.

Available liquidity in that quarter reached LE 4.6 billion, while net debt registered LE 19.7 billion so that the debt-to-equity ratio stood at 2.04x.

Ezz Steel's sales hiked 63 percent to LE 8 billion in the first quarter of 2017 compared to LE 4.9 billion in a year-ago period. Sales of steel rebar and flat steel reached LE 5.3 billion and LE 2.8 billion, representing 65 percent and 34 percent of total sales, respectively.