New Delhi/London: Global steel giant ArcelorMittal has posted a net income of USD 4,621 million (around Rs 34,430 crore) for the third quarter ended September 30, 2021, on the back of “continuing strong price environment”. The company follows January-December fiscal year.
Sharing the details of its JV company in India, ArcelorMittal said AMNS India has posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 551 million during the quarter under review as against USD 176 million a year ago.
The JV with Nippon Steel produced 1.9 MT steel compared to 1.8 MT in the year-ago quarter.
“In India, our joint venture with Nippon Steel continued to perform strongly despite headwinds from higher energy prices and the pandemic. Steel production at Hazira rose further in the third-quarter and the JV is making good progress with its expansion and vertical integration plans,” ArcelorMittal Chief Executive Officer (CEO) Aditya Mittal said.
“While the pandemic continues to introduce higher than normal levels of volatility across the world, our confidence in India’s domestic steel industry and long-term economic growth prospects remains intact,” Mittal added.
AMNS India is a 60:40 joint venture between Luxembourg-based ArcelorMittal and Nippon Steel of Japan. In 2019, the two foreign entities completed the acquisition of Essar Steel Ltd plant located at Hazira in Gujarat, and later renamed it as ArcelorMittal Nippon Steel (AMNS) India.
“ArcelorMittal recorded net income for 3Q 2021 of USD 4,621 million…As compared to net income of USD 4,005 million for 2Q 2021, and a net loss of USD 261 million for 3Q 2020,” the Luxembourg-based firm said in a statement.
Sales in July-September were USD 20.2 billion. In the year-ago period, sales were USD 13.3 billion, the company said.
Total steel shipments in the third quarter were at 14.6 million tonne (MT), lower from 17.5 MT in the same period in 2020.
The shipments were lower due to weaker demand (in particular automotive) as well as production constraints and order shipment delays which are expected to reverse in the last quarter.
Gross debt decreased by USD 1 billion to USD 8.2 billion as of September 30, 2021.
Mittal said third quarter results were supported by the continuing strong price environment, resulting in the highest net income and lowest net debt since 2008.
“Despite the volatility we continue to see as a result of the ongoing presence and repercussions of COVID-19, this has been a very strong year for ArcelorMittal.
“We have re-positioned our balance sheet, re-set ourselves for the transition to a low-carbon economy, we are growing strategically through high-quality, high-return projects and we are returning capital to shareholders. We are aware of the challenges but excited by the opportunities that will exist for steel in the coming years and beyond,” he said.
The outlook remains positive, underlying demand is expected to continue to improve; and, although marginally off the recent record highs, steel prices remain at elevated levels, something which will be reflected in the annual contracts for 2022, the CEO said.
PTI
