Following the liberalisation of the exchange rate in Egypt, the Egyptian company, “Ezz,” anticipated becoming the largest producer of steel in the Arab world and Africa, which is incurred by losses of currency differences of about 2. 2 billion pounds in the second half of this year, according to the company’s disclosure to the Egyptian Stock Exchange.
According to the statement, the company warned that the drop in the value of the Egyptian pound could cause its overall losses to increase to 3. 3 billion pounds in 2022.
The company said, according to the disclosure, that one of the most important reasons for these losses is the dollar obligations based on companies, which increased during the recent period as a result of covering the import operations in the dollar.
Taking into account the rights of the minority, Iron Ezz Company saw profits rise from 2.39 billion pounds in the first half of 2021 to 4.12 billion pounds from January through the end of June of last year.
Sales for the corporation climbed from 30. 41 billion pounds in the first half of last year to 38. 49 billion pounds in the first six months of this year.
Ezz iron accounts for about 40% of the armament iron market in Egypt, and the company is estimated to increase local consumption 10% to 8. 1 million tons in 2022.
According to information on the company’s website, Ezz Iron now operates four plants with manufacturing capacities of around 7 million tonnes of weaponry and flat steel in Sadat and Tenth of Ramadan, Suez, and Dekheila in Alexandria.
The dollar increased in value by about 16% to 22.95 pounds last Thursday as a result of the Central Bank of Egypt raising interest rates by 200 basis points and approving the adoption of a flexible exchange rate for the pound against foreign currencies based on the market’s supply and demand mechanism. The dollar’s price has since risen to more than 24 pounds in some banks today.
Following the liberation of the pound’s price, “Ezz Iron” anticipates losses of 2.2 billion pounds.
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