Essar Steel Algoma posts $21 million net income in Oct-Dec

Essar Steel Algoma today posted a net income of $21.3 million for October-December quarter buoyed by higher sales and realisation.

The Ontario-based company, a unit of the Ruias-controlled Essar Steel, had reported a net loss of $30.65 million in the same quarter last year.

"The gain is attributable to higher shipments coupled with higher selling prices and lower costs," Essar Steel Algoma said in a statement.

Shipments for the quarter were 6.18 lakh tonnes, up 4.7% as compared to the same period last year. Average realised sales returns improved in the quarter by 15.8%.

The company said it had completed a comprehensive recapitalisation and refinancing during the quarter, resulting in a deleveraging of the balance sheet by more than $200 million and an approximate $47 million reduction in annual cash interest expense.

"While we are seeing some near-term softening in market fundamentals we are confident our balanced product mix and low cost position provide a sound foundation for strategic reinvestment in optimisation and growth in the months and years ahead," Essar Steel Algoma Chief Executive Officer Kalyan Ghosh said.