Swedish iron ore producer LKAB has issued its financial results for the first quarter of the current year.
In the first quarter of this year, LKAB registered a net profit of SEK 1.35 billion ($155.97 million), compared to a net profit of SEK 1.42 billion in the same quarter of the previous year. Sales revenues in the given quarter increased by 13 percent year on year to SEK 6.22 billion ($719.44 million), mainly due to a better result from price and currency hedging, while the company recorded an operating profit of SEK 1.56 billion ($180.30 million) compared to an operating profit of SEK 1.68 billion in the first quarter of 2017.
In the first quarter this year, the company’s iron ore output amounted to 7.3 million mt, increasing by 1.4 percent year on year. In the same quarter, the company's shipments rose by three percent to 6.8 million mt compared to 2017.
LKAB stated that during 2018 it expects that the oversupply situation within iron ore fines will continue, which is putting pressure on iron ore prices; at the same time, the premium for highly upgraded iron ore products is expected to remain high. Meanwhile, demand for LKAB’s pellets continues to be strong and the strategy of maximizing pellet production remains in place.