Chilean iron ore and steel producer Grupo CAP has posted a net profit of $226 million for 2022, against a net profit of $741.4 million for 2021.
According to CAP, the lower result reflects chiefly lower iron ore prices during the quarter, coupled with the impact of inflation on items linked to the operational costs in all areas of the company, especially those related to the steel production and processing, which were also affected by the lower performance, and consequent lower demand, of the civil construction activity in Chile and Peru.
The iron ore and pellets sales in 2022 were respectively 16.5 million mt and 16.2 million mt, with this segment’s gross profit declining on yearly basis by 41.3 percent to $940.9 million and net profit declining by 49 percent to $479.6 million.
In the steel production segment, Siderurgica Huachipato had a negative EBITDA of $91.0 million and a net loss of $122.4 million, due to sales of steel products reduced from 2021 by 19.6 percent to 696,300 mt, while production costs increased by 34.4 percent.
In the steel processing segment, CAP had a net loss of $38.9 million.