Austrian steelmaker Voestalpine AG has announced its financial results for the first half ended September 30 of the financial year 2022-23.
The company posted a net profit of €715 million for the first half, compared to a net profit of €486 million in the same half of the previous financial year. In the first half, the revenues of the company amounted to €9.3 billion, up 36.6 percent year on year, posting a record high despite the generally negative environment. In the given period, the company’s EBITDA was €1.4 billion, increasing by 42 percent year on year.
According to Voestalpine’s statement, demand for the company’s high quality steel products was high in almost all segments.
According to economic experts, the economy will continue to contract considerably during the second half of the financial year 2022-23.
The company stated that during the second half the biggest challenges will arise in Europe, whereas the downturn in North America should still remain modest over the next few months. Demand in Brazil is expected to decline but only slightly on the whole despite the expected weakening of the domestic economy. The company expects China to continue more or less along its current trajectory and deliver restrained growth in the second half of the current business year. Hence, the company’s global positioning should help at least to support earnings despite the expected contraction of the economy in the second half.
Voestalpine said it expects its EBITDA to be in the range of €2.3-2.4 billion in the business year 2022-23.
The company also stated that it has filled its own natural gas storage facility and diversified its natural gas supplies in response to the scenario of a threat of a lack of natural gas supplies in Europe. At present, Voetstalpine’s European plants cover roughly one half of their natural gas needs from non-Russian sources, while the amount of natural gas contained in the company’s storage facility would be sufficient for at least three months’ full production activity. As a result, production at the company’s European plants is ensured for the remainder of the year.