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Canada’s Algoma Steel posts net loss for Q2, EAFs to be commissioned in Dec

Monday, 11 November 2024 10:29:44 (GMT+3)   |   San Diego
       

Canada-based steel producer Algoma Steel has announced its financial and operational results for the second quarter ended September 30 of the fiscal year 2024-25.

In the second quarter, the company registered a net loss of CAD 106.6 million, compared to a CAD 31.1 million net income in the same period last year, while its revenues dropped to CAD 600.3 million, compared to CAD 732.6 million in the same quarter of the previous year, mainly due to lower steel shipments, greater consumption of purchased coke and weakening market conditions.

In the second quarter, the company’s adjusted EBITDA amounted to CAD 3.5 million and its EBITDA margin was 0.6 percent. The company’s shipments in the second quarter totaled 520,443 mt, down by 5.2 percent from 548,998 mt recorded in the same period last year.

In addition, the company stated that it has made substantial progress on the construction of two new state-of-the-art electric arc furnaces to replace its existing blast furnace and basic oxygen steelmaking operations. Algoma expects to commission electric arc furnaces in December this year and start steel production by the end of the first quarter of 2025.

“Our fiscal second quarter results reflect solid operational performance in the face of persistent market headwinds, allowing us to deliver shipments and adjusted EBITDA within our previous guidance ranges. Despite challenging market conditions, our planned ramp up in plate production following completion of our plate mill modernization project continued in the quarter and the associated benefits from a greater mix of value-added products helped offset a steep decline in steel prices,” says Michael Garcia, CEO of Algoma Steel.


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