Luxembourg-headquartered global steel giant ArcelorMittal has announced its financial results for the first half of the current year.
In the first half this year, ArcelorMittal achieved a net profit of $1.44 billion, compared to a net profit in the first half last year of $2.95 billion, largely due to lower operating results and financing costs. The company’s sales revenues in the given period decreased by 12.3 percent year on year to $32.53 billion, due to lower average steel selling prices and a decline in steel shipments. The company registered an EBITDA of $3.82 billion in the first half, compared to an EBITDA of $5.14 billion in the corresponding period of the previous year.
ArcelorMittal’s crude steel production decreased by 0.3 percent to 29.1 million mt in the first half, while its iron ore production declined by 7.5 percent to 19.7 million mt, both year on year. The company’s total steel shipments in the given period amounted to 27.3 million mt, down by 4.9 percent year on year.
In the given period, the producer’s North America operations were heavily impacted by an illegal blockade by the Mining Union in Mexico. The blockade is estimated to have caused losses of around 400,000 mt of crude steel and $100,000 in EBITDA.
Looking at the company's investments, its 1 GW renewables project in India and construction of a new 700,000 mt continues annealing line and continuous galvanizing line in Brazil has begun commissioning. Further projects nearing completion include an EAF in the US and capacity expansion in Liberia. Strategic growth projects are estimated to add $1.8 billion to the company's EBITDA potential by the end of 2026.
The report states that overall economic sentiments remain subdued with customers maintaining a wait-and-see approach with no apparent restocking yet, and the company believes the current market conditions are unsustainable. Nevertheless, the company is positive on the medium/long-term steel demand outlook.