Swedish iron ore producer LKAB has issued its financial and operational results for the third quarter and first nine months of this year.
In the third quarter, the company registered a net profit of SEK 2.12 billion ($199.98 million), compared to a net profit of SEK 4 billion in the third quarter of 2023, while its sales revenues decreased by 22.6 percent year on year to SEK 8.37 billion ($789.73 million). In addition, LKAB recorded an operating profit of SEK 2.07 billion ($195.42 million), compared to an operating profit of SEK 4.99 billion in the corresponding quarter of the previous year.
In the given quarter, the company’s iron ore output amounted to 4.9 million mt, declining by 30.0 percent, while its iron ore shipments fell by 6.3 percent to 5.9 million mt, both on year-on-year basis.
The company stated that the third quarter’s production was impacted by major production disruptions and lengthy production shutdowns for remedial measures. These measures will continue in the coming months, which will limit production in the fourth quarter.
Meanwhile, in the January-September period, the net profit of LKAB amounted to SEK 6.70 billion ($632.42 million), falling from the net profit of SEK 11.59 billion recorded in the same period of the previous year, while its sales revenues fell by 22.2 percent year on year to SEK 23.70 billion ($2.24 billion). The company’s operating profit for the first nine months of the year came to SEK 6.10 billion ($575.72 million), compared to the operating profit of SEK 12.43 billion in the same period of 2023.
In the given period, the iron ore output of LKAB amounted to 16.9 million mt, falling by 12.0 percent, while its iron ore shipments went down by 19.1 percent to 15.2 million mt due to the major derailments on the iron ore line at the beginning of the year, both on year-on-year basis.