Africa's largest steel producer, ArcelorMittal South Africa, has announced its financial results for the first quarter of the current year, reporting a net profit of ZAR 322 million ($31.1 million), compared to a net loss of ZAR 275 million in the corresponding quarter of the previous year.
In the first quarter, the company's EBITDA amounted to ZAR 754 million ($72.8 million), compared to ZAR 169 million in the corresponding quarter of the previous year. ArcelorMittal South Africa's sales revenue in the first quarter increased by 17.9 percent year on year to ZAR 9.15 billion ($883.4 million), following an 11 percent increase in average net realized prices. The company's steel shipments in the given quarter were up five percent, with export shipments rising by 70 percent, while local shipments decreased 11 percent, all year on year.
ArcelorMittal South Africa's overall liquid steel production was 1.24 million mt, 21 percent higher compared to the same period of the previous year, resulting in improved capacity utilization for flat steel at 79 percent compared to 54 percent in the first quarter of 2013, while long steel capacity utilization decreased from 81 percent to 75 percent.
According to ArcelorMittal South Africa, during the second quarter of 2014 the relining of the blast furnace in Newcastle will commence. Stocks have been put in place to assure that domestic demand can be supplied during the project duration of approximately four months. However, production cost will be high, and the market is expected to remain subdued overall. The company expects this situation to negatively impact the results.