ArcelorMittal earns 17% less until September for energy costs
The steel giant ArcelorMittal has obtained a net profit of 9,000 million dollars (9,020 million euros) at the end of its third fiscal quarter of 2022, which represents a drop of 17% With respect to the 10,911 million dollars (about 10,885 million euros) that it earned in the first nine months of last year, mainly due to rising energy costs necessary for its industrial production.
The gross operating result (Ebitda) reached 12,903 million dollars (about 12,872 million euros) at the end of September, 10% less, and 2,660 million dollars (about 2,653 million euros) in the third quarter. From July to September, the group recorded a net profit of 993 million dollars (990.6 million euros).
ArcelorMittal has indicated that during this third quarter there has been affected by a negative price-cost effect, “headwinds” of energy costs and a 5.6% sequential decline in steel shipments to 13.6m tonnes, down 7.1% year-on-year.
Steel shipments remained stable in majority compared to last year, excluding ArcelorMittal Kryvyi Rih, which was affected by the war in Ukraine. The group’s net debt stood at 3,900 million dollars (about 3,892 million euros) at the end of September, compared to 4,200 million dollars (4,191 million euros) registered at the end of June.
The CEO of ArcelorMittal, Aditya Mittalindicated that the strong market conditions enjoyed for much of the past two years “stood in the third quarter as seasonally lower shipments, a reduction in exceptional price levels, inventory drawdowns and higher costs energy combined to put pressure on earnings.
He also added that the short-term outlook for the industry remains “uncertain and caution is warranted.” However, he stressed that ArcelorMittal “has the strength, resilience and experience to face the future with confidence.” “Backed by a strong balance sheet, we will continue to focus on executing our strategy, designed to ensure our long-term leadership in the sector, as well as to generate sustainable returns for investors,” he said.
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