Ezzsteel 2010 consolidated profit soars

Egyptian group ezzsteel said 2010 consolidated net profit almost tripled, buoyed by strong domestic demand for long products and the restart of a flat steel plant.

Net profit for 2010 was 252 million Egyptian pounds ($42 million), while net sales rose 32 percent and EBITDA increased 29 percent, ezzsteel said on Tuesday.

Flat steel production jumped 49 percent to 1.46 million tonnes because of the restart of production at its EFS unit, ezzsteel said. Demand for long steel was underpinned by strength in housing and infrastructure last year.

Ezzsteel shares have tumbled this year as its founder Ahmed Ezz -- a political ally of deposed President Hosni Mubarak -- battles corruption charges from prison.

The charges levelled against Ezz centre on the company's dominant role in the local steel market and the terms of its purchase of its Ezz Dekhaila unit.

The company, which replaced Ezz as chairman in May, said it had suffered minor disruption and slowed production volume due to the political and economic turmoil that followed Mubarak's overthrow in February. Nevertheless, it reported higher volumes in the first half of 2011.