Informe financiero anual
EZZ STEEL INFORMA LOS RESULTADOS CONSOLIDADOS DEL AF23
El Cairo, 8 de abril de 2024 - Ezz Steel (EGX: ESRS; London Stock Exchange: AEZD), the largest independent producer of steel in the MENA region and market leader in Egypt, today announced its consolidated results for the period ending 31 December 2023. The audited results have been prepared in accordance with Egyptian Accounting Standards.
Pegue el siguiente enlace en su navegador web para descargar un PDF de los estados financieros completos relacionados con este anuncio:
http://www.rns-pdf.londonstockexchange.com/rns/5306K_1-2024-4-14.pdf
Puntos clave
millones de libras esterlinas
FY23 | FY22 |
| ||
Las ventas netas | 142,914 | 83,984 |
| |
Beneficio bruto | 39,305 | 18,778 |
| |
EBITDA * | 35,239 | 16,810 |
| |
Beneficio neto antes de impuestos** | (983) | 8,926 |
| |
Beneficio neto | (717) | 6,647 |
| |
Ganancias por acción (EPS)*** | (0.21) | 7.98 |
* EBITDA = sales - cost of goods sold - selling & marketing expense - G&A expense + depreciation and amortisation
** After allowing for an FX loss of EGP 30.9 bn.
*** EPS = Net profit after tax & Minority Interest / No. of shares at the end of the period, for the fiscal year ending 31 December 2023.
Para mayor información: Acero Ezz |
|
|
Ahmad Nabil | +20 2 27989844 | +20 100 177 7703 |
Eman Abu Zeid | +20 2 27989900 | +20 100 2500153 |
Comentario
Al comentar sobre los resultados, la junta emitió las siguientes notas a los accionistas:
· Sales amounted to EGP 142,914 million in FY23 compared to EGP 83,984 million in FY22 (up 70%). Reinforcing steel bars and wire rod coils (reinforcing steel) sales accounted for 61% of total sales, and hot rolled coils (HRC) flat steel sales accounted for 38%.
· Ezz Steel achieved a new export record in FY23 as its exports reached $1,584 million, the highest for a manufacturing company in Egypt's history. HRC exports amounted to $1,006 million (63.5% of the total), and reinforcing steel amounted to $578 million (36.5%). In FY22, exports were $797 million, divided into HRC ($639 million) and reinforcing steel ($158 million).
· In FY23, 1,402 thousand tonnes of HRC were exported, representing 63% of total HRC sales. This is compared to 697 mil toneladas in FY22 (only 38% of HRC sales). As for acero de refuerzo, exports in FY23 reached 963 thousand tonnes representing 28% of its sales, compared to 195 thousand tonnes in FY22 (only 6% of reinforcing steel sales). The company continues to give utmost priority to exports as its proceeds in foreign currency funds procurement of imported raw materials and consumables.
· The company's domestic sales of reinforcing steel went down from 3,058 thousand tonnes in FY22 to 2,485 thousand tonnes in FY23 (19%) as sales were directed towards exports.
· Acero Ezz nacional HRC sales decreased by 28% from 1,127 thousand tonnes in FY22 to 807 thousand tonnes in FY23. Same as reinforcing steel, the decline in local sales was a consequence of maximising export sales.
· Steady production of the second electric arc furnace (EAF) n Sokhna - Suez, started in May 2023, with a capacity of 1.6 million tonnes annually. Danieli, the world's renown steel technology and equipment supplier, provided knowhow, supplied equipment, and conducted commissioning tests. This expansion cost is EGP 4.2 billion, financed by a EGP 2.2 billion loan with the balance from the company's internal resources. Worth noting that the second EAF helped increase production and sales in general and that of HRC in particular.
· In 2023, Egypt's crude steel production rose by 6% to 10.4 million tons according to World Steel Association (WSA). This was driven by increased exports, especially HRC, the proceeds of which enabled the industry to secure imports of essential raw materials.
· According to data from the Ministry of Supply & Internal Trading, Egypt's consumption of reinforcing steel plummeted by 17% from 7,916 thousand tons in 2022 to 6,531 thousand tons in 2023. HRC local consumption fell by 13% to 1,477 thousand tons vs. 1,700 thousand tons in 2022. This decline can be mainly attributed to a critical shortage of dollars coupled with the devaluation of EGP, which negatively affected the economic growth. The heightened costs and prices affected the purchasing power of consumers.
· Worth mentioning that Egypt's consumption of reinforcing steel has been suffering a significant downward trend since 2016, during which consumption reached 8,610 thousand tons (24% higher than 2023). Construction activities by owner/builder contractors in particular came to a near standstill in 2023; however, the successful floatation of EGP on 6 March 2024, and the associated economic decisions, are expected to restore growth and, with it, higher consumption. Furthermore, the new building legislations and their executive regulations which were passed in 2023 and 2024 may result in issuing more private licenses and the resumption of private building in Egypt.
· In spite of the heavy drop in consumption by 17%, the production of reinforcing steel in Egypt only declined by 4% to 8 million tons in 2023, compared to 8.4 million tons in 2022. Robust growth of Egyptian exports prevented a more significant production shortfall. Exports increased in FY23 more than 3-fold to 1.54 million tons up from 523 thousand tons in 2022.
· Healthy exports of HRC were the driver for production to increase by 31% in 2023 to 2,345 thousand tons vs. 1,796 thousand tons in 2022. Exports rose by 103% reaching a record 1.4 million tons in 2023 compared to 690 thousand tons in 2022. The emphasis on exports allowed imports to fill the supply gap rising from 574 thousand tons in 2022 to 665 thousand tons in 2023 (16%), benefiting from low entry barriers. This is in line with historical high penetration of, mostly low quality/low cost, imported HRC. Egypt remains with no remedies or trade actions to limit unfair practices of imported HRC.
· Forex losses reached EGP 30.9 billion in 2023. Of this amount EGP 15.9 billion were to arrange the foreign currency component including the short-term dollar banks' and suppliers' facilities which financed imports of raw materials and consumables- accordingly, it is en esencia an element of the cost of goods sold (COGS). The compelled local price increases of reinforcing steel and HRC were to absorb part of such forex loss. The company fully understands the unusual economic circumstances which led to this situation; going forward, upon the floatation of the Egyptian Pound on 6 March, the resulting availability of foreign currency and stability of EGP is expected to reduce forex losses. Ezz Steel prides itself of having been transparent throughout the year, disclosing to its stakeholders the severe noticeable de-facto devaluation of EGP over the period, whereby investors could analyse the real value of the company's liabilities every quarter.
· Net loss before taxes reached EGP 983 million in FY23. This is compared to a net profit before tax of EGP 8,926 million in FY22. Income tax amounted to EGP 3,746 million, and deferred tax (asset) EGP 4,012 million. Net loss after tax accordingly reached EGP 717 million in FY23, compared to a net profit of EGP 6,647 million in FY22.
· The Central Bank of Egypt (CBE) increased the lending rate twice in 2023 by a total of 3% to reach 20.25% in August. The upward interest rates trend led to higher interest and financing expenses of EGP 6,198 million in FY23, an increase of 84% compared to FY22 (EGP 3,363 million). On 1 February 2024 and on 6 March 2024, after the end of the fiscal year, interest rates were increased by 2% then by 6% respectively to reach 28.25%. This will increase interest expense in coming periods. However, such high level of interest rate is expected to be temporary to contain inflation and would then decrease gradually.
· Within the frame of its growth strategy, Ezz Steel plans to diversify the flat steel product and increase its production. The company's current production of HRC ranges in thickness from 1mm to 16mm and width from 800mm to 1600mm. The expansion project aims to produce 1 million tons annually of hot-rolled steel plates with a thickness ranging from 5 mm to 120 mm, and a width of up to 3.65 meters. This will be integrated with the industrial complex in Sokhna, Suez. Among the key design parameters are reducing carbon footprint and emissions. The company's objectives are to localize the steel plate industry, meet the needs of local market replacing imports, and to increase exports relying on Ezz Steel's global sales network. The company obtained the project's licenses at a cost of EGP 2.1 billion (including VAT), which was fully paid. Detailed studies for the project are underway. Plans to invest in these new plants are contingent to granting Ezz Steel license to produce directly reduced iron (DRI) which is the main metallic input for quality production of flat steel.
· The steel sector globally managed to sustain the crude steel production of 2023 at 1.89 billion tons, same as that reached in 2022. Contributing to this were the persistence of robust production in China, reaching 1.02 billion tons, and a noteworthy 12% surge in India's output to 140 million tons, which were largely driven by Government-funded initiatives. Elsewhere, the industry faced a setback as demand for steel dwindled amid soaring inflation and high interest rates which affected the construction and manufacturing domains in Europe and the United States.
Acerca de Ezz acero
Ezz Steel is the largest steel producer in the Arab World and North Africa according to the World Top Steel Makers for 2022 published by World Steel Association (WSA). The Company is the Egyptian market leader with a total capacity of 7 million tonnes of finished steel products per annum. Ezz Steel was established on 2/4/1994 as an Egyptian joint stock company in accordance with the provisions of Law No. 159 for the year 1981.
En 2023, la Compañía produjo 3.55 millones de toneladas de productos largos (generalmente utilizados en la construcción) y 2.23 millones de toneladas de productos planos (generalmente utilizados en las industrias de ingeniería, automotriz, tuberías de acero y productos de consumo). Ezz Steel implementa lo último en tecnología moderna de fabricación de acero y se compromete a aumentar aún más la integración vertical en sus plantas, impulsando la flexibilidad operativa.
Revisión operacional
The below financial breakdowns are based on Ezz Steel's consolidated financials.
Ventas
Consolidated net sales for FY23 were EGP 142.9 billion compared to EGP 84.0 billion in FY22, representing a 70% increase.
Long steel products accounted for EGP 87.2 billion, or 61% of sales in FY23, while flat steel products represented 38% of sales at EGP 54.6 billion. Long steel product exports accounted for 20% of its sales, while flat product exports accounted for 57% of its sales.
| Valor de las ventas EGPMn | Nacional | % | Exportar | % |
| Largo | 69,333 | 80% | 17,844 | 20% |
| Las rebabas | 23,622 | 43% | 30,997 | 57% |
Long sales volume increased 6% to reach 3.45 million tonnes during FY23 compared to 3.25 million tonnes during FY22. Flat sales volume increased 21% to reach 2.21 million tonnes compared to 1.82 million tonnes during FY22.
Ezz Steel's consolidated sales volumes totalled 5.66 million tonnes in FY23 compared to 5.07 million tonnes in FY22, an increase of 12%.
Producción
Long steel production volumes totalled 3.52 million tonnes during FY23, 8% increase compared to 3.27 million tonnes during FY22. Flat steel production volumes increased 30% to reach 2.33 million tonnes in FY23 compared to 1.79 thousand tonnes in FY22.
Costo de los bienes vendidos
Consolidated Cost of Goods Sold in FY23 represented 72.5% of sales compared to 77.6% in FY22, to reflect an increase of realizado gross profit margin from 22.4% in FY22 to 27.5% in FY23.
Beneficio bruto
Gross profit of EGP 39.3 billion was recorded in FY23 for Ezz Steel consolidated, a 109% increase compared to the EGP 18.8 billion recorded in FY22.
Comparable
Consolidated EBITDA for FY23 amounted to EGP 35.2 billion, a 110% increase compared to the EGP 16.8 billion recorded in FY22.
Pérdida cambiaria
Foreign exchange loss amounted to EGP 30.9 billion in FY23.
Impuestos
During FY23, Ezz Steel incurred an income tax of EGP 3.7 billion and a deferred tax (asset) of EGP 4.0 billion.
Net profit/loss before Tax
Net loss reached EGP 983 million FY23.
Net profit after Tax
Resultado neto después de impuestos y minoritarios grabado un de of EGP 717 million for FY23.
Liquidez y recursos de capital
Al final del período, Ezz Steel tenía efectivo disponible de 32.1 millones de EGP y una deuda neta de 37.5 millones de EGP.
Outlook
· Globally, in 2024, according to WSA, it is anticipated that global steel demand will increase by 1.9% from 1.89 million tons to 1.92 billion tons. However, uncertainties persist, particularly concerning China's economic trajectory amidst ongoing structural transitions in its property market which could affect Chinese consumption, and accordingly world consumption, of steel.
· Locally, the recent economic reforms -in particular the EGP floatation on 6 March 2024- attracted significant loans from prestigious financial institutions such as the IMF and EU. It also paved the way for mega projects such as the Ras El Hekma project which considerably enhanced foreign currency inflows. This is expected to restore the pace of national projects once again and boost major real estate developments. Furthermore, private building is also expected to benefit from stability and from clear building legislations in place. Based on these developments, a 5% growth in steel consumption is anticipated in 2024.
· Ezz Steel is cognizant of how important it is for heavy industries, particularly steel, to lower emissions. The company is committed to a cleaner, more sustainable world. Operationally, the Carbon Border Adjustment Mechanism (CBAM), will become effective starting 2026 in the EU, other countries are expected to follow with similar procedures. The objective is to encourage trade of products with lower emissions and apply a tariff on those which do not meet the guidelines. Ezz Steel started to disclose its carbon emissions to its EU clients as required in preparation for applying CBAM. The industrial configuration of the company relies on directly reduced iron (DRI) as main feedstock, uses natural gas to reduce the DRI from its oxides and electricity as the energy source for electric arc furnaces (EAF) in the steel making for melting; as such it is already in the lowest quartile in carbon emissions among steel makers. Notwithstanding, the company is reassessing its production lines for further reduction in emissions and seeking the highest measures of emission reduction and control in new projects and upgrades.
Descripción general de la división
Ezz acero independiente Ventas (EUR): | AF 2023 | AF 2022 | 4Q 2023 | 3Q 2023 | |
Valor: | Mn | 27,635 | 16,666 | 8,296 | 8,533 |
Volumen: | 000 Toneladas | 887 | 936 | 233 | 256 |
Exportaciones como % de Ventas: | 8% | - | - | 6% | |
EBITDA: | Mn | 4,880 | 1,307 | 1,861 | 1,383 |
Producción: | |||||
Productos largos: | 000 Toneladas | 883 | 895 | 243 | 226 |
Billetes: | 000 Toneladas | 847 | 845 | 231 | 210 |
AF 2023 | AF 2022 | 4Q23 | 3Q23 | ||
Ezz Steel Consolidado Ventas (EUR): | |||||
Valor: | Mn | 142,914 | 83,984 | 39,672 | 40,980 |
Volumen: | |||||
Longitud: | 000 Toneladas | 3,448 | 3,248 | 945 | 1,064 |
Plano: | 000 Toneladas | 2,209 | 1,824 | 567 | 549 |
Exportaciones como % de Ventas: | |||||
Longitud: | 22% | 6% | 16% | 18% | |
Plano: | 57% | 38% | 52% | 59% | |
EBITDA: | Mn | 35,239 | 16,810 | 9,804 | 10,219 |
EBT | Mn | (983) | 8,926 | 1,252 | (1,755) |
Beneficio neto | Mn | (717) | 6,647 | 1,212 | (1,118) |
Producción: | |||||
Productos largos: | 000 Toneladas | 3,518 | 3,274 | 1,025 | 1,001 |
Productos planos: | 000 Toneladas | 2,328 | 1,787 | 601 | 589 |
Billetes: | 000 Toneladas | 3,626 | 3,299 | 1,104 | 992 |
Cláusula de exención de responsabilidades:
Este comunicado de prensa es emitido por Ezz Steel (anteriormente: Al Ezz Steel Rebars SAE), la "Compañía", en relación con la divulgación de los resultados financieros de la Compañía para el trimestre que finaliza el 31 de marzo de 2022. Este comunicado de prensa incluye declaraciones prospectivas. Estas declaraciones prospectivas incluyen todos los asuntos que no son hechos históricos. En particular, las declaraciones sobre la estrategia de la Compañía, la fortaleza esperada de la demanda de productos largos y planos en Egipto y en los mercados regionales e internacionales, y otros eventos o perspectivas futuras son declaraciones prospectivas. Los destinatarios de este documento no deben depositar una confianza indebida en las declaraciones a futuro porque implican riesgos conocidos y desconocidos, incertidumbres y otros factores que en muchos casos están fuera del control de la Compañía. Por su naturaleza, las declaraciones a futuro implican riesgos e incertidumbres porque se relacionan con eventos y dependen de circunstancias que pueden ocurrir o no en el futuro. Las declaraciones prospectivas no son garantías de rendimiento futuro y los resultados reales de las operaciones, la situación financiera y la liquidez de la Compañía, y el desarrollo de la industria en la que opera la Compañía pueden diferir materialmente de los expresados o implícitos en las declaraciones prospectivas contenidas. en este documento. Las declaraciones de advertencia establecidas anteriormente deben considerarse en relación con cualquier declaración futura escrita u oral posterior que la Compañía, o las personas que actúen en su nombre, puedan emitir. Varios factores podrían hacer que los resultados reales difieran materialmente de los expresados o implícitos en las declaraciones prospectivas de este documento, incluidas las tendencias económicas mundiales, las tendencias globales y regionales en la industria del acero, el clima económico y político de Egipto y Medio Oriente, los cambios en la estrategia de negocios de la Compañía, y varios otros factores. Estas declaraciones prospectivas reflejan el juicio de la Compañía a la fecha de este documento y no pretenden dar ninguna garantía sobre los resultados futuros. La Compañía no asume ninguna obligación de actualizar estas declaraciones prospectivas, y no publicará ninguna revisión que pueda hacer a estas declaraciones prospectivas que puedan resultar de eventos o circunstancias que surjan después de la fecha de este documento. Ninguno de Ezz Steel, ninguno de sus directores, funcionarios o empleados o cualquier otra persona puede dar ninguna garantía con respecto a la precisión futura de la información establecida en este documento o en cuanto a la ocurrencia real de cualquier desarrollo previsto. Además, ninguna de dichas partes asumirá, y cada una de ellas renuncia expresamente, cualquier obligación (excepto según lo exija la ley o las normas de la ESE, la LSE o la FCA) de actualizar cualquier declaración prospectiva o de conformar estas declaraciones prospectivas. declaraciones a Ezz Steel's resultados actuales.
RNS puede usar su dirección IP para confirmar el cumplimiento de los términos y condiciones, para analizar cómo interactúa con la información contenida en esta comunicación y para compartir dicho análisis de forma anónima con otros como parte de nuestros servicios comerciales. Para obtener más información sobre cómo RNS y la Bolsa de Valores de Londres utilizan los datos personales que nos proporciona, consulte nuestra Política de privacidad.