ArcelorMittal Nippon Steel India (AMNS India), the Indian JV of ArcelorMittal, the world’s second-largest steel-maker, reported an over 160 per cent jump in earnings before interest, tax, depreciation and amortisation at $533 million for the quarter ended September 30, 2023. Earnings in the year-ago-period was $204 million.
ArcelorMittal has a 60 per cent stake in the JV.
The EBITDA shot-up on a YoY basis due to higher steel shipments and lower costs including the gain from the unwinding of a natural gas hedge.
However, the EBITDA during Q3 was lower sequentially by 5 per cent as compared to $563 million in Q2 2023, primarily due to lower average steel selling prices offset in part by higher steel shipments and lower costs.
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The company follows a calendar year for accounting purposes.
Crude steel production in Q3 2023 increased by 17 per cent YoY to 1.9 million tonnes (mt). Q3 2022 had been impacted by planned maintenance.
Steel shipments for the period under review was up 5 per cent higher YoY at 1.9mt.
The results are a part of ArcelorMittal’s three and nine-month results.
The company in its analysts presentation said, planned expansion of the Hazira plant in Gujarat to 15 mt by 2026 was on-track. The existing rated capacity at the plant is 8.6 mtpa.
“Ongoing debottlenecking and Phase 1 upstream and downstream expansion progressing well in Hazira,” ArcelorMittal said in its analysts’ presentation.
ArcelorMittal’s renewable energy project (975MW nominal capacity) in India was “on track for completion in 1H 2024”. Once completed, the project is expected to provide over 20 per cent of AMNS India’s Hazira plant electricity requirements.