Egypt's largest steel maker Ezz Steel's net loss in the first quarter of 2015 increased to LE136 million ($17 million) from a LE19 million loss in the same period last year, hit by foreign currency shortages, the company said on Thursday.
Net sales fell to LE4.8 billion from LE5.3 in the same period last year.
"Ezz Steel was not able to source sufficient foreign currency, due to a major change in the regulations of the banking sector," said Paul Chekaiban, chairman and managing director.
"As a consequence we had to limit imports of raw materials and to reduce the volume of our production and sales which has negatively impacted margins and the bottom line," he said.
Ezz Steel operates four plants in Egypt and controls more than half the country's steel market.
Like other heavy industries in Egypt, its profitability had suffered in recent years from weak exports and a shortage of gas as the government diverted gas supplies towards electricity production to ease regular blackouts.
However, in October Egypt imposed temporary tariffs to protect domestic steel rebar manufacturers from cheap foreign imports during the energy crunch.
($1 = LE7.8300)
