Ezz Steel, Egypt’s largest steel producer had a net loss of EGP 559.1m ($71.4m) between January and September 2015, Ahram Online reports citing the Egyptian Bourse data. In the same period last year, the company reported net losses of EGP 205.4m ($26.2m).
Like many commodity producers in Egypt, Ezz Steel has been affected by currency and energy problems. In a statement in November, Ezz Chairman, Paul Chekaiban attributed losses to severe foreign currency shortages, which had prevented the company from ensuring the feedstock of its factories. Ezz and other companies have been further affected by a weak Egyptian pound.
Ezz has also been affected by disruptions in gas supplies. Earlier in the year, the company attributed losses to constant disruption of utilities and lack of natural gas. However, EGAS has recently announced a restoration of the full supply of gas to high-consuming industries, according to Daily News Egypt. This is likely to help commodity companies through the winter months, although disruptions are likely to return in the summer.