ArcelorMittal net profit plummets

ArcelorMittal net profit plummets

ArcelorMittal's Hamburg site in northern Germany is partially idled after its gas bill jumped seven-fold
ArcelorMittal's Hamburg site in northern Germany is partially idled after its gas bill jumped seven-fold. Photo: Axel Heimken / AFP/File
Source: AFP

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find “Recommended for you” block on the home page and enjoy!

ArcelorMittal, the world's number-two steel maker, saw its net profit tumble by 78 percent in the third quarter of 2022 as metal prices fell from "exceptional" levels during the post-Covid recovery and energy prices soared.

The global steel market is suffering both from the slowdown in China's economic growth -- the world's largest user of steel -- and from the fallout of the war in Ukraine and the surge in energy prices in Europe.

From July to September, ArcelorMittal said in a statement that it made a net profit of $993 million compared to $4.6 billion in the same quarter last year, bringing the profit for the first nine months of the year to $9 billion compared to $10.9 last year.

Read also

Nissan hikes forecasts on weak yen despite falling unit sales

"The strong market conditions enjoyed for much of the past two years deteriorated in the third quarter as seasonally lower shipments, a reduction in exceptional price levels, destocking and higher energy costs combined to put profits under pressure," said Aditya Mittal, ArcelorMittal CEO.

While expressing confidence in his group's resilience he warned that the "short-term outlook for the industry remains uncertain and caution is appropriate."

In September, ArcelorMittal said it would shut down two of its blast furnaces in Europe over high energy prices and lower demand.

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Its furnaces in Bremen in northern Germany and near Gijon in northern Spain will cease to operate until further notice at the end of the month, it announced.

The CEO of the group's partially-idled Hamburg site, Uwe Braun, told AFP in October that its gas bill had multiplied by seven compared to the period before Russia's invasion of Ukraine.

Read also

Moldova facing dark winter as energy crisis bites

In Thursday's update the steelmaker said it had reduced European gas consumption by 30 percent amid soaring costs.

Gas prices

Total steel shipments in the third quarter were down just over seven percent compared with the same quarter the previous year, which the group said largely reflects weaker demand and seasonality in Europe.

But the group said shipments "remain broadly stable" -- excluding ArcelorMittal Kryvyi Rig which is impacted by the war in Ukraine.

Work halted for a month when Russian forces approached Kryvyi Rig, but eventually restarted at a reduced tempo.

The steelmaker has also said that it continues towards a goal of decarbonisation for its future business strategy.

Mittal said in Thursday's update that the group hoped the COP27 summit in Egypt would lead to the "scaling up of renewable energy, critical for both the decarbonisation of steel and enhanced energy security."

The update said the group had broken ground on its first low-carbon emissions steelmaking project in Canada, which removes coal from the ironmaking process.

New feature: Сheck out news that is picked for YOU ➡️ find “Recommended for you” block on the home page and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.