Swedish iron ore producer LKAB has issued its financial results for the second quarter and first half of the current year.
In the second quarter, the company registered a net profit of SEK 1.09 billion ($120.07 million), compared to a net profit of SEK 968 million in the second quarter of 2017. Sales revenues in the given quarter increased by 8.2 percent year on year to SEK 6.16 billion ($677.34 million), while the company recorded an operating profit of SEK 931 million ($102.39 million) compared to an operating profit of SEK 1.15 billion in the corresponding quarter of the previous year.
In the second quarter this year, the company’s iron ore output amounted to 6.1 million mt, decreasing by three percent year on year, while its iron ore shipments fell by three percent year on year to 6.4 million mt.
Meanwhile, in the first half, the net profit of the company was SEK 2.44 billion ($268.6 million), rising from the net profit of SEK 2.39 billion recorded in the first half of the previous year. Sales revenues in the given period rose by 10.5 percent year on year to SEK 12.38 billion ($1.36 billion), while the company registered an operating profit of SEK 2.49 billion ($273.64 million), compared to the operating profit of SEK 2.84 billion in the corresponding period of the previous year.
In the first six months of this year, the iron ore output of LKAB amounted to 13.4 million mt, falling slightly by 0.7 percent year on year. In the same period, the company's iron ore shipments remained stable year on year at 13.2 million mt.
The company stated that the second quarter’s production was impacted by disruptions to production, mainly in the Northern Division. During the quarter extensive maintenance work was carried out, which will improve both environmental performance and production stability going forward.