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Mar.28.2024 1USD=7.0948RMB
  SteelHome >>Steel>>Market Info>>Special Studies
 
ArcelorMittal Reports 2Q 2021 Results

https://en.steelhome.com [SteelHome] 2021-08-19 11:05:31

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Key Highlights:

Health and safety performance: Protecting the health and wellbeing of employees remains the Company’s overarching priority; LTIF rate3 of 0.89x in 2Q 2021 and 0.83x in 1H 2021

Significantly improved operating performance in 2Q 2021, with the continuing demand recovery supporting a further positive evolution of steel spreads and 2.4% sequential increase in steel shipments to 16.1Mt (vs. scope adjusted6Mt in 1Q 2021)

2Q 2021 operating income of $4.4bn compares to $2.6bn in 1Q 2021; 1H 2021 operating income of $7.1bn

EBITDA of $5.1bn in 2Q 2021, the strongest quarter since 2008 and 55.8% higher than 1Q 2021; 1H 2021 EBITDA of $8.3bn represents the strongest half year performance since 2008

Share of JV and associates net income in 2Q 2021 further improved to $0.6bn, reflecting continued strong performance at AMNS India8 and AMNS Calvert9; 1H 2021 share of JV and associates net income $1.0bn

Net income of $4.0bn in 2Q 2021 vs. $2.3bn in 1Q 2021; 1H 2021 net income of $6.3bn (vs. adjusted net loss in 1H 2020 of $0.9bn)represents the strongest half year performance since 2008

Free cash flow18 of $1.7bn generated in 2Q 2021 ($2.3bn net cash provided by operating activities less capex of $0.6bn) includes a further $1.9bn investment in working capital on account of higher market prices; this brings the 1H 2021 free cash flow generated to $2.0bn ($3.3bn net cash provided by operating activities less capex of $1.2bn less minority dividends $0.1bn) despite a total $3.5bn investment in working capital

Gross debt declined to $9.2bn (vs. $11.4bn as end of 1Q 2021 and $12.3bn as end of 2020) and net debt declined to $5.0bn (vs. $5.9bn as end of 1Q 2021 and $6.4bn as end of 2020)

Since April 1, 2021, the Company returned $1.6bn to shareholders through share buybacks and the payment of the annual base dividend. Total returns to shareholders since September 2020 now total $2.8bn

Strategic update and outlook:

Leadership on decarbonization: New Group CO2 reduction target of 25% by 2030; new Europe CO2 reduction target of 35% (previously 30%) by 2030 includes the acceleration of DRI-EAF investments and the world’s first full scale zero carbon-emissions steel plant at Sestao, Spain; the new group decarbonization plan requires an estimated gross investment (pre-government funding) of $10bn

Capex update: FY 2021 capex is expected to increase to $3.2bn from previous guidance of $2.9bn to reflect the impacts of higher volumes and capacity utilization – the Company’s operating plan (including the number of tools utilized) has changed to reflect the strength of the demand environment

Demand outlook improving: The Company has upgraded its global apparent steel consumption (ASC) forecast in 2021 vs. 2020 from +7.5% to +8.5% (from previous growth estimate of +4.5% to +5.5%

New $2.2bn share buy-back program: The Company will return the $1.2bn proceeds from the redeemed Cleveland Cliffs preference shares and has decided to advance $1bn as part of its prospective 2022 capital return to shareholders (equivalent to 50% of 1H 2021 FCF) as a share buy back program to be completed by the end of 2021

Financial highlights (on the basis of IFRS):

(USDm) unless otherwise shown

2Q 21

1Q 21

2Q 20

1H 21

1H 20

Sales

19343

16193

10976

35536

25820

Operating income / (loss)

4,432

2,641

-253

7073

-606

Net income / (loss) attributable to equity holders of the parent

4005

2285

-559

6290

-1679

Basic earnings / (loss) per common share (US$)

3

2

-0.5

5.4

-1.57

Operating (loss) / income / tonne (US$/t)

276

160

-17

217

-18

EBITDA

5,052

3,242

707

8294

1674

EBITDA/ tonne (US$/t)

314

197

48

255

49

Crude steel production (Mt)

17.8

17.6

14.4

35.4

35.5

Steel shipments (Mt)

16.1

16.5

14.8

32.6

34.3

Total group iron ore production (Mt)

 

 

 

 

 

Iron ore production (Mt) (AMMC and Liberia only)

13.3

15.3

14.8

13.5

14.4

Iron ore shipped (Mt) (AMMC and Liberia only)

9.8

10.6

9.8

9.2

8.6

Source from ArcelorMittal

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