EghtesadOnline: Esfahan Steel Company has posted strong growth in sales volume and value in the first half of the current fiscal year (March 21-Sept. 22), extending a continuously rising trend in its performance so far this year.
The steelmaker sold a total of 1.6 million tons of beams, rebars, coils and ingots valued at 18.48 trillion rials ($462 million) during the six-month period to post a 74.71% and 49.02% year-on-year growth in volume and value respectively, according to latest company data published on Codal.ir.
Ingot sales made up 503,028 tons of total sales valued at 7.11 trillion rials ($177.89 million), followed by beams with 291,903 tons valued at 5 trillion rials ($125.2 million), rebars with 283,990 tons valued at 4.6 trillion rials ($117 million), coils with 40,883 tons valued at 678 billion rials ($16.95 million) and “other products” with 10,442 tons valued at 170 billion rials ($4.25 million).
ESCO produced a total of 1.07 million tons of products in H1, recording a 7.71% rise in output YOY, Fiancial Tribune reported.
The company’s output for the sixth month of the year, Shahrivar (Aug. 23-Sept. 22), stood at 179,637 tons, up 16.46% YOY.
ESCO sold 242,581 tons of its products valued at 3.4 trillion rials ($85.25 million), recording a 3.43% fall in sales volume and 49.92% jump in value YOY.
Shahrivar shows a marked drop compared to ESCO’s performance in the month before, Mordad (July 23-Aug. 22). Output, sales volume and value all dropped 7.64%, 35.64% and 35.13% month-on-month respectively.
The company is doing much better compared to last year, but is yet to beat its own Mordad record–ESCO’s best month so far this year.
The Isfahan-based producer is Iran’s oldest steelmaker and the largest producer of structural steel. It was jointly established in 1965 by Iran and Soviet Union’s Tyazhpromexport Company. Its steel production facilities became operational in 1972.
In its latest financial report, ESCO set its sales target at 42 trillion rials ($1.08 billion) for the current fiscal year. About 56% of the target have been realized in H1, with Shahrivar sales accounting for 8% of it.
Exports Drive ESCO Forward
ESCO also recorded significant growth in its H1 exports, according to latest data announced by the company’s marketing and sales deputy, Ehsan Dashtianeh.
“Zob Ahan’s exports in the first six months of the year reached 659,000 tons, indicating an 89% growth compared with last year’s similar period. The value of shipments also stood at $250.19 million, rising 120%,” the official was quoted as saying by Bourse Press. He used ESCO’s local name.
Rebar shipments made up 80,000 tons of overall exports, followed by beam and coil with 56,000 and 36,000 tons respectively. Steel products listed as “other” made up 486,000 tons of exports.
ESCO shipped a total of 73,361 tons in Shahrivar, down 19%. This stands in stark contrast to its 198% jump in exports the month before.
Yet, the company has truly turned a corner in exports this year, as its H1 shipment record has already surpassed its last year’s total exports by about 11,000 tons.
According to Dashtianeh, ESCO’s products go to Qatar, Sudan, Egypt, Oman, Thailand, the UAE, Pakistan, the Netherlands, Belgium, Tajikistan, Afghanistan and Iraq.
“Drowning in debt” was how ESCO was described for the past few years. Based on the latest statistics, the company’s accumulated losses stood at 21.03 trillion rials ($544.86 million) by the end of this year’s first quarter (ended June 21). Its total debts also stood at 83.25 trillion rials ($2.15 billion).
However, ESCO’s new focus on exports and cost-cutting measures has now put it on a path to growth.
The 30.3-trillion-rial ($846.1 million) company has recently updated its earnings per share forecast for the current year to a 5-rial profit per share compared to the 20-rial loss first forecasted by the end of the first quarter, according to company data.