Business news from Ukraine

ArcelorMittal increased EBITDA by 44%, to $2.6 bln

27 July , 2023  

ArcelorMittal increased its EBITDA by 44% in Q2 2023 compared to Q1, to $2.6 bln, the company said in a statement.

The steelmaker points to improving market conditions as well as positive effects from M&A deals (the acquisition of Pecem in Brazil and the consolidation of ArcelorMittal Texas HBI). For the six months, EBITDA rose to $4.4 billion from $3.9 billion a year earlier.

Operating profit last quarter was up 62% on Q1, to $1.9 billion. January-June operating profit was $3.1 billion, compared with $8.9 in the first six months of 2022.

Net income in the April-June period was $1.86 billion (up 70%), down 63% to $2.96 billion for the first half of the year.

Revenue increased last quarter by 0.6% quarter-on-quarter to $18.6 bln. In January-June, ArcelorMittal’s revenue fell by 16% to $37.1 bln largely due to lower metal shipments and a 14.7% drop in average realized price.

ArcelorMittal’s April-June capex totaled $1.06 billion ($938 million quarter earlier), with a 2023 capex guidance of $4.5-5 billion.

In the second quarter, the company increased steel output by 1.4% quarter-on-quarter to 14.7 million tons; for the half-year, it decreased by 5.5% to 29.2 million tons.

Metal shipments fell 2% to 14.2 million tons last quarter, down 3.4% (to 28.7 million tons) in January-June.

The company’s production of yellow ore for the quarter fell 4.5% to 6.4 million tons, with 13.1 million tons produced in the six months compared to 14.2 million tons of yellow ore a year earlier.