(Photo courtesy of Ezz Steel)
Egypt steel producer Al-Ezz Dekheila Steel Company, owned by Ezz Steel, announced Monday it has registered EGP 116m in net losses in the first quarter (Q1) of 2015. The latest figures are down from the EGP 144m in net losses achieved in the corresponding period in 2014.
In a statement to the Egyptian Stock Market (EGX), Al-Ezz Dekheila explained that it has achieved EGP 266m in total profits in Q1 of 2015, compared to EGP 362m in Q1 of 2014.
In a separate statement to the EGX, the company’s investor relations said the company’s factories are suffering from unstable natural gas supplies that led to a shortage in required gas quantities.
Al-Ezz Dekheila said it will consider depending on alternative sources of energy to make up decline in steel production resulted from natural gas shortage.
Earlier this month, Ezz Steel reported a net loss of EGP 835.5m in 2014, after registering EGP 527.8m in net profits in 2013.
The company’s former chairman, Ahmed Ezz, who also owns 51% of its shares and was formerly secretary-general of Mubarak’s National Democratic Party, has been standing trial for two separate cases since the outbreak of the 25 January Revolution.
The first case was for the illegal acquisition of EGP 6.4bn in business deals related to his Ezz El-Dekheila steel plant. In the second case, Ezz was accused of illegal sales of steel licences. All of Ezz’s appeals have been accepted.
The business tycoon was reported to have announced his willingness to donate half of his wealth to the Long Live Egypt Fund, after his release from jail on bail in August 2014. Ezz Steel’s board of directors was said to be considering Ezz’s return to the board.
At the time, Ezz paid the first instalment of an EGP 100m monopoly fine, with the rest to be paid over nine-month instalments.
Egypt’s steel production is expected to witness a shift after the recent decision by the Ministry of Industry and Foreign Trade, to prepare tools and regulations for issuing operating licences in the steel and cement industry.
Minister of Industry and Foreign Trade Mounir Fakhry Abdel Nour imposed in April protection fees on imported rebar steel, at 8% for one tonne, or no less than EGP 408 per tonne.
