AM/NS January-March EBITDA doubles sequentially

Steel Insights Bureau

AM/NS India’s Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) or operating profit has doubled during the March quarter compared to the December quarter on higher shipments and higher selling prices, joint venture partner ArcelorMittal has said while announcing the quarterly financial results.

EBITDA has gone up 2.10 times to $341 million during January-March 2023 from $162 achieved during October-December 2022. Year-on-year, EBITDA, however, dropped, due to lower prices.

“EBITDA during Q1 2023 of $341 million was higher as compared to $162 million in 4Q 2022, due to higher steel shipments, higher average steel selling prices and lower costs (including energy costs). EBITDA during 1Q 2023 of $341 million was lower as compared to $470 million in 1Q 2022, due to lower prices offset in part by higher steel shipments,” ArcelorMittal said.

Expansion project underway

Projects are underway to expand capacity to 15 mt by 2026, ArcelorMittal said.

Growth plans in steel & mining

♦ Approved investment plan of $7.4 billion to expand capacity, increasevalue added capabilities and leverage infrastructure. This includes $0.8 billion for ongoing debottlenecking; $1 billion for downstream; $5.6 billion for upstream expansion

Investing $1 billion in state-of-theart downstream facilities at Hazira to supply growing automotive demand; CGL4 to be commissioned in July 2023; (CRM2 complex on track for commission in July 2024)

Upstream expansion of Hazira (phase 1A) to 15 mt by early 2026 underway

Enhancing iron ore capabilities: setting up slurry pipelines to connect mines to beneficiation plants in Thakurani and Sagasahi and beneficiation of ore in Odisha

♦ Port, power and other logistics and infrastructure assets acquired from Essar Group (India) for $2.4 billion

♦ Capacity expansion to 20 mt at Hazira; 12 mt greenfield project in Odisha

Crude steel production in Q1 of 2023 increased by 8.6 percent to 1.8 million tons (mt) as compared to 1.6 mt in Q4 2022. Production was higher by 2 percent as compared to Q1 2022.

Steel shipments in Q1 2023 increased by 15 percent to 1.8 mt as compared 1.6 mt in Q4 2022 and 5.7 percent higher as compared to 1.7 mt in Q1 2022.