AM/NS India Q3 results: Ebitda up 208% at $499 mn on higher steel shipments

ArcelorMittal Nippon Steel India (AM/NS India) reported a 208 per cent increase in earnings before interest, tax, depreciation, and amortisation (Ebitda) at $499 million in the October-December quarter, driven by higher steel shipments. Ebitda was $162 million in the year-ago period.

Sequentially, Ebitda was 6.4 per cent lower compared to $533 million in the previous quarter, which included a lower impact from natural gas hedges.

AM/NS India achieved a record crude steel production in December 2023, reaching an 8.1 million tonne (mt) run rate, close to the 8.6 mt capacity debottlenecking target.

Crude steel production in the October-December quarter stood at 1.96 mt, 21 per cent higher than 1.62 mt in the year-ago period; steel shipments at 1.87 mt were 17.6 per cent higher than 1.59 mt in the year-ago period.

For the full year ended December 2023, AM/NS India Ebitda stood at $1.9 billion compared to $1.2 billion in the previous year.

The numbers were published as part of ArcelorMittal’s results for three- and 12-month periods ended December 31, 2023.

The global steel company follows a January-December financial year. ArcelorMittal has a 60 per cent equity interest in AM/NS India.

ArcelorMittal said that the expansion of AM/NS India’s Hazira plant to 15 mt capacity was “progressing well” and on track for completion in 2026. The next phase of capacity expansion to 20 mt was planned, and plans for expansion to 24 mt (including 1.5 mt long capacity) were under preparation.

Greenfield options were also being developed, which could take the total capacity to more than 40 mt.

ArcelorMittal, the world’s second-largest steelmaker, reported a net loss of $2.97 billion compared to a net profit of $261 million due to the impairment of Acciaierie d’Italia in Italy and the negative impact of the disposal of Kazakhstan operations. Sales at $14.55 billion were 13.85 per cent lower than $16.89 billion in the year-ago period impacted by lower average selling prices.

Commenting, Aditya Mittal, chief executive officer, ArcelorMittal, said, “Despite the operating environment becoming increasingly challenging as the year progressed, our profitability per tonne is healthy and well above long-term averages. This highlights the enhanced sustainability we have built into the business, enabling us to generate healthy cash flow to invest for future growth and return attractive levels of capital to our shareholders.”

“Looking ahead, there are early signs of a more constructive industry backdrop. This, alongside the progress we are making with our portfolio of strategic growth projects — several of which will be completed this year — means the company will continue to take important steps forward in its drive to be a stronger, more profitable, and of course, a safer company,” he added.