Managing Director of Mobarakeh Steel at the annual general meeting of the company;
The volume of Mobarakeh steel investments reached 6.8 billion euros/ Investing in gas fields to provide sustainable energy
me-metals: The CEO of Mobarakeh Steel Co. announced the investment of € 6.8 billion euros in the company's annual general meeting.
According to me-metals, Saeed Zarandi, CEO of Mobarakeh Steel Co., said on Monday at the company's annual general meeting: The direct and indirect investment of Mobarakeh Steel Group in projects is worth approximately 6.8 billion euros, and despite the extent of these investments, the main focus of management is on 121 domestic projects of Mobarakeh Steel; projects that estimate their spending reaches about 75 thousand billion tomans.
The development projects of Saba Steel and Rolling Company, the launch of the hot rolling line 2, water treatment and transmission, optimization of production lines, strengthening energy infrastructure and improving management systems are among the most important parts of these investments.
The cash flow required by Mobarakeh Steel Group is estimated to be more than 361 thousand billion tomans and the annual consumption of its capital reaches 139 thousand billion tomans. Also, the annual energy cost of this industrial group has now crossed the border of 40 thousand billion tomans and is expected to increase to 52 thousand billion tomans.
Saba Steel and Rolling Company has been independent and officially separated from Mobarakeh Steel from the beginning of the year, which increased the value of Saba's capital by 58 Thousand Billion Tomans, and so far, 48 Thousand Billion Tomans has been paid; For this reason, the profit margin of Mobarakeh Steel fell from 57 percent to 36 percent, and if the current conditions of prices continue, our profitability will face.
The price of Mobarakeh Steel Co. has fallen from $919 in 2021 to $422 this year, due to the decline of political tensions between China and the United States and the arrival of 100 million tons of new products into the Middle East market. The share of energy in the costs of the first quarter of this year has reached more than 27 percent, which is an increase of 33 times compared to the year 2019, while the price of gas has increased by 35.5 times.
In the year 2025, due to the increase in energy costs and restrictions, the production of the hot coil of Mobarakeh steel has decreased by 98 thousand tons. Also, the dividend received from subsidiaries has reached 14 thousand billion tomans, which has decreased compared to the previous year; the sharp growth of the total operating revenue of last year's Mobarakeh Steel Group is 76 thousand billion tomans and the net profit of 99.6 thousand billion tomans.
Mobarakeh Steel is forced to invest in the gas field to allow independent gas exploration and extraction in a 2.5-year project and reduce dependence on the national gas network. Mobarakeh Steel's financial resources have been directed towards more profitable projects and, while opposing unreasonable pricing, we hope that with the cooperation of the government and the Competition Council, the process of price reform will be in favor of the stability of production and the market.
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