ArcelorMittal Nippon Steel India clocks 188% jump in Ebitda to $403 million

ArcelorMittal Nippon Steel India (AMNS India) clocked a 47 per cent higher Ebitda (earnings before interest, taxes, dep­reciation and amortization) qu­arter-on-quarter (QoQ) and 188 per cent year-on-year (YoY) to $403 million in the quarter ended March 31, 2021.
 
While announcing the earnings, which was the best in a decade for ArcelorMittal, the company said in the 1Q21, AM­NS India achieved solid production, annualising at 7.3 million tonnes (Mt). The company achieved $403 million Ebitda (with a FY21 run rate of $1.6 billion) with a greater focus on export markets.
 
ArcelorMittal has a 60 per cent holding in the India joint venture with Nippon Steel and follows a January-December fiscal year. The business (AM­NS India) is already exceeding the level of Ebitda required to cover the cash needs of the op­erations (maintenance cap­ex and cash interest) of $300 million annually, the firm said.
 
ArcelorMittal said its inc­ome from associates, JVs, and other investm­ents for 1Q21 was $453 million, as compared to $7 million for 4Q­20 and $142 million in 1Q20. The income was higher on acc­ount of improved results from AMNS India and AMNS Calvert.
 
ArcelorMittal, on Thursday, reported a strong set of num­bers on the back of a demand recovery and surging steel prices. The firm reported a net income of $2.3billion in 1Q21, as compared to net income of $1.2 billion and adjusted net income of $0.2 billion in 4Q20. Ebitda of $3.2billion in 1Q21 was 88 per cent higher than 4Q20 Ebitda of $1.7 billion; it was $1.0 billion in 1Q20. Steel shipments were 6.5 per cent higher sequentially.
 
Aditya Mittal, CEO, Arcelor­Mittal, said, “The first quarter has been our strongest in a decade. While this is a welcome development after a challenging 2020, we are mindful that Covid continues to be a challe­nge, especially in developing eco­nomies. Nowhere is this more obvious than in India, wh­ere we have our AM/NS India JV with Nippon Steel.”