ArcelorMittal Nippon Steel India (AM/NS India) on Thursday reported a 54.24 per cent year-on-year (YoY) rise in earnings before interest, taxes, depreciation, and amortization (Ebitda) at $563 million in Q1 due to higher steel shipments and lower costs.
In the year-ago period, the company’s Ebitda stood at $365 million.
Sequentially, Ebitda was up by 65.10 per cent due to higher average steel selling prices and lower costs.
The company’s Ebitda in the previous quarter was at $341 million.
Crude steel production, which was at 1.8 million (mt), was 7.4 per cent higher YoY.
It was ‘stable’ quarter-on-quarter (QoQ) following an 85-day Corex furnace shutdown offset by higher production from the DRI route, the company said.
Steel shipments at 1.7 mt were 11.1 per cent higher YoY, but lower by 8.3 per cent QoQ due to planned maintenance of hot strip mill (HSM).
The numbers were published as part of ArcelorMittal's results for three and six-month periods ending June 30, 2023.
The global steel major follows a January-December financial year.
ArcelorMittal has a 60 per cent equity interest in AM/NS India.
The planned expansion of AMNS India Hazira plant to 15 mt capacity by 2026 was progressing well, the company said.
On India’s outlook, ArcelorMittal said it continues to expect another strong year with apparent steel consumption growth in the range of 6 to 8 per cent, unchanged from the previous guidance.
But the steel giant has forecast global ex-China apparent steel consumption to grow between 1 per cent to 2 per cent in 2023 as compared to 2022.
It was down from the previous estimate of 2 per cent to 3 per cent due to the impact of interest rate rises in the US and weak construction activity in Europe.
Financial results of ArcelorMittal, the world’s second-largest steel producer, reflected lower average selling prices and lower shipments.
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Ebitda in the quarter stood at $2.6 billion compared to $5.2 billion in the year-ago period.
However, the Ebitda improved from the previous quarter at $1.8 billion on higher steel spreads and lower costs.
Commenting on the results, Aditya Mittal, ArcelorMittal chief executive officer (CEO), said: “We have delivered a strong set of financials in the first half of the year, which reflect the improved market conditions and also the positive impact of recent strategic acquisitions.”