ArcelorMittal Reports Net Income of US $ 4,621 Million in September Quarter; AMNS India JV EBITDA at USD 551 million
Global steel giant ArcelorMittal on Thursday reported net profit of $ 4,621 million (roughly Rs.34,430 crore) for the third quarter ended September 30, 2021, thanks to “a still high pricing environment.” The company follows the January-December fiscal year.
“ArcelorMittal recorded a net profit for Q3 2021 of $ 4,621 million … against a net profit of $ 4,005 million for Q2 2021, and a net loss of $ 261 million for Q3 2020,” said the Luxembourg company in a press release. Sales in July-September amounted to $ 20.2 billion. During the period last year, sales amounted to $ 13.3 billion, the company said. Total steel shipments in the third quarter were 14.6 million tonnes (MT), down from 17.5 MT for the same period in 2020. Shipments were lower due to demand lower (in particular automotive) as well as production constraints and delays in shipping orders which should reverse in the last quarter. Gross debt decreased by $ 1 billion to reach $ 8.2 billion as of September 30, 2021.
ArcelorMittal CEO (CEO) Aditya Mittal said third quarter results were supported by a still strong pricing environment, resulting in the highest net profit and lowest net debt since 2008. âDespite the volatility that we continue to observe due to the continued presence and repercussions of COVID-19, this year has been very strong for ArcelorMittal.
âWe have repositioned our balance sheet, we have reoriented ourselves towards a low carbon economy, we are developing strategically through high quality, high yield projects and we are returning capital to shareholders. We are aware of the challenges but excited about the opportunities that will exist for steel in the years to come and beyond, âhe said.
The outlook remains positive, underlying demand should continue to improve; and, although slightly outside recent highs, steel prices remain at high levels, which will be reflected in annual contracts for 2022, the CEO said. Sharing details of its JV company in India, ArcelorMittal said that AMNS India recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 551 million in the quarter under review, compared to $ 176 million it a year ago. The joint venture with Nippon Steel produced 1.9 MT of steel compared to 1.8 MT in the quarter of the previous year.
âIn India, our joint venture with Nippon Steel continued to perform well despite the headwinds of rising energy prices and the pandemic. Steel production at Hazira increased further in the third quarter and the JV is progressing well with its expansion and vertical integration plans.
âAs the pandemic continues to introduce above normal levels of volatility across the world, our confidence in India’s national steel industry and long-term economic growth prospects remain intact,â Mittal said. . AMNS India is a 60:40 joint venture between Luxembourg- based at ArcelorMittal and Nippon Steel of Japan. In 2019, the two foreign entities completed the acquisition of the Essar Steel Ltd plant located in Hazira, Gujarat, and later renamed it ArcelorMittal Nippon Steel (AMNS) India.