CAIRO: Ezz Steel posted a 21 percent rise in third-quarter net profit as construction demand in Egypt drove up sales, reported Reuters.
The company made LE 291.9 million ($53 million) in the third quarter after tax and minority interests, according to its income statement, as revenues surged 56 percent to LE 4.2 billion.
A company release had previously given net profit as LE 291 million.
We are seeing construction demand in the oil-rich countries and there is a real estate and infrastructure boom in Egypt and North Africa, said Kamel Galal, a company spokesman.
Ezz Steel, which owns a majority stake in Ezz Dekheila, the largest producer of steel in Egypt by market value, agreed in October to build a $750 million steel plant in Algeria and said it had bid to buy Egyptian state-owned steel firm Arcosteel.
We are expecting this demand to go on for some time, Galal said.
The company boosted its stake in its subsidiary Ezz Flat Steel to 75 percent from 59 percent in September, also lifting sales, Galal said.
Domestic sales accounted for 74 percent of the total and export sales 26 percent, the company said. Ezz Steel said it had more than a 65 percent share of Egypt s market by sales.
Reuters also quoted Chairman Ahmed Ezz was as saying in a statement that the company was seeking to diversify its product range and increase profitability despite rising costs.
Ezz Steel said its earnings before interest, taxes, depreciation and amortization were LE 1.1 billion for the quarter. Earnings per share were LE 1.63.