ArcelorMittal Q4 net income declines 93 pc to USD 261 mn

This, alongside the mitigatory actions, we took in the second half of the year to adapt production levels and optimise energy consumption, has added resilience to our business.Customer destocking in the second half of 2022 has peaked, hence, providing support to apparent steel consumption and steel spreads.

Global steel giant ArcelorMittal has posted a 93.54 per cent fall in its net income to USD 261 million for the fourth quarter ended December 31 on account of lower sales.

The Luxembourg-based company had posted a net income of USD 4,045 million in the year-ago period.

In a statement, ArcelorMittal said it has ''recorded a net income in 4Q 2022 of USD 261 million compared to...USD 4,045 million for 4Q 2021. Adjusted net income was USD 1,189 million compared to USD 3,827 million for 4Q 2021''.

Its steel production fell to 13.2 MT from 16.5 MT a year ago.

The total steel shipments in 4Q 2022 stood at 12.6 MT, 19.9 per cent lower from 15.8 MT in the October-December period of 2021, reflecting the significantly lower demand due to destocking.

Sales in 4Q 2022 at USD 16.9 billion were also 18.8 per cent down compared to USD 20.8 billion for 4Q 2021, primarily due to lower average steel selling prices and lower steel shipment volumes.

Aditya Mittal, ArcelorMittal's Chief Executive Officer, said: ''Our full-year results demonstrate the benefits of our strengthened asset portfolio and the improvements we have made to our cost base in recent periods. This, alongside the mitigatory actions, we took in the second half of the year to adapt production levels and optimise energy consumption, has added resilience to our business''.

Customer destocking in the second half of 2022 has peaked, hence, providing support to apparent steel consumption and steel spreads. Although geopolitical uncertainty remains high, the company remains confident to execute its strategy of growth, decarbonisation and sustainable returns through all aspects of the cycle, he said.

ArcelorMittal, along with Nippon Steel of Japan, owns and operates a 60:40 JV company ArcelorMittal Mittal Nippon Steel (AMNS) India.

AMNS India's crude steel production in 4Q 2022 decreased by 12.1 per cent to 1.6 MT compared to 1.8 MT in 4Q 2021 due to lower exports following the imposition of export duties on steel exports from India in 2Q 2022 (export duties removed from the end of November 2022).

Steel shipments in 4Q 2022 decreased by 8 per cent to 1.6 MT compared to 1.7 MT in 4Q 2021.

''EBITDA during 4Q 2022 of USD 162 million was lower as compared to USD 204 million in 3Q 2022, due to lower steel shipments and lower selling prices,'' it said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)