Cairo – Mubasher: Ezz Steel revealed that turning into losses during the first quarter of 2019 was prompted by rising iron ore prices.
Ore iron prices have increased following the collapse of a dam at one of the mines owned by Brazilian Vale, one the biggest iron ore exporters to Ezz Steel, according to a statement to the Egyptian Exchange (EGX) on Monday.
In December 2018, Ezz Steel cut steel price by about EGP 600 per tonne and the price remained unchanged during Q1-19.
During the three-month period ended 31 March, the iron and steel manufacturing company incurred net losses of EGP 1.27 billion, versus profits of EGP 184 million in the prior-year period.
Year-on-year, sales rose to EGP 12.61 billion from January to March, compared to EGP 12.6 billion.
Meanwhile, financing costs grew to EGP 1.16 billion in Q1-19 from EGP 1 billion in Q1-18.
As for non-consolidated business, Ezz Steel’s net losses soared by 97%, logging EGP 369.32 million in the January-March period of 2019, compared to EGP 187.41 million in the corresponding period in 2018.
