Ezz Steel has reported EGP 145.9m losses in the first quarter (Q1) 2015, compared to EGP 20.16m profits in Q1 2014, the steel producer said in a statement to the Egyptian Stock Market.
The steel producer has registered net loss of EGP 835.5m in 2014, after registering EGP 527.8m in net profits in 2013.
Ahmed Ezz, who is the company’s former chairman, the owner of 51% of its shares and is former secretary-general of Mubarak’s National Democratic Party, has been standing trial for two separate cases over three years since 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.
Steel production in Egypt 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 a percentage of 8% for one tonne, or no less than EGP 408 per tonne.
