Chilean iron ore and steel producer Grupo CAP has posted a net profit of $87.89 million for 2023, 74.5 percent less than in 2022.
Under the same comparative basis, net sales declined by 1.4 percent to $2.96 billion, production costs increased by 1.3 percent to $2.27 billion and the operational profit declined by 9.3 percent to $691.4 million.
In volume, iron ore production increased by 4.3 percent to 17.4 million mt, the steel production at the Huachipato steel plant increased by 6.0 percent to 692,000 mt, while the processing of steel products in the steel solutions division declined by 8.2 percent to 270,000 mt.
The company mentioned that “positive performance in mining business was offset by weak results in the steel business segment, mainly explained by distortion in prices,” adding that a $149 million impairment provision on the Huachipato steel plant assets has worsened the financial performance of the group.