PJSC ArcelorMittal Krivoy Rog (Dnipropetrovsk Region) ended 2022 with a net loss of UAH 49 billion 9.104 million, while in 2021 it posted a net profit of UAH 25 billion 282.951mn.
According to the official information of the company, the net loss per share reached 12.7 UAH. At that, based on the results of the last year AMKR assets amounted to 52 billion 682.761 million UAH, shareholders’ equity – 28 billion 212.939 million UAH, and long-term liabilities – 6 billion 46.354 million UAH.
Commenting on the results of activities in 2022, Mauro Longobardo, the general director of AMKR, stated that the main conclusion that can be made now is that the enterprise has survived and has not stopped working in spite of the full-scale war.
“The question of survival and resistance to all adverse factors has become the main task of the entire mining and metallurgical industry throughout 2022. Now ArcelorMittal Krivoy Rog continues to fight for survival, having survived last year’s difficulties related to the blockade of major seaports, as well as power outages and even a missile strike. We manage to maintain a satisfactory state of the company’s liquidity, including by attracting credit funds under ArcelorMittal group guarantees,” the top manager noted.
He also added that the support of the parent company, as well as the heroic work of the employees, made it possible to maintain the pulse of production in Kryvyi Rih.
“Now we are concentrating on gradually resuming more and more production processes at the combine and we expect to move to positive EBITDA as early as the second half of this year,” Longobardo said.
According to him, according to international financial reporting standards, in 2022 the company recognized UAH 36 billion of losses from a decrease in the usefulness of its non-current assets as a result of negative changes in the economic environment caused by Russian military aggression. Under the conditions of full-scale war in 2022 the level of AMKR capacity utilization did not exceed 20-25%. In spite of this, the company retained its staff, and all employees receive their salaries on time.
The company does not stop investing even in the extremely difficult wartime conditions. Now those investment projects are being implemented, without implementation of which the production of steel and ore may stop completely. Among such projects is the construction of the new tailing pond “The Third Map”, which is necessary for the continuation of production and safe storage of the production wastes.
It is also reported that in 2022 AMKR invested $181.4 million in production development, of which operating costs amounted to $68.6 million and capital – $112.8 million. During the 17 years of work in Ukraine ArcelorMittal invested $10.6 billion (including $4.8 billion – the amount of purchase at privatization + $5.8 billion – investment in production development).
“ArcelorMittal Krivoy Rog is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, particularly rebars and wire rod.
ArcelorMittal owns in Ukraine the largest mining and metallurgical plant “ArcelorMittal Krivoy Rog” and a number of small companies, in particular PJSC “ArcelorMittal Beryslav”.
ARCELORMITTAL KRYVYI RIH, LOSS
