AMNS India has posted its lowest EBIDTA (earning before interest depreciation and tax) in five quarters in the three-month ended March, even as the company, formerly Essar Steel, managed to deliver a record shipment in the period.
AMNS India, a 60:40 joint venture between ArcelorMittal and Nippon Steel, earned an EBIDTA of $312 million compared with $341 million in the first quarter of calendar year (CY) 2023 and $499 million in the preceding three-month period ended December 2023.
The lower profitability came despite steel shipments in the first quarter of CY2024 reaching a record 2 million tonnes, representing an increase of 7.9 per cent compared with the fourth quarter of CY2023, including higher exports. With production also hitting 2 MT in the period, AMNS India’s Hazira plant in Gujarat is now close to achieving an annual production target of 8.6 MT (post debottlenecking).
AMNS attributed the lower EBIDTA to a negative price-cost effect, including a lower impact from natural gas hedges, partially offset by higher shipments. Sources said Indian steel makers are feeling the price pressure in the wake of growing Chinese imports. The company is on track to expand capacity to 15 MT in Hazira.
ArcelorMittal
ArcelorMittal posted a $2 billion EBIDTA in the first quarter of calendar year 2024, up from $1.5 billion in the previous quarter. EBIDTA per tonne stood at $145 compared with $110 in 4QCY23.
The Luxembourg-based company recorded a net income of $0.9 billion, a significant improvement from the net loss of $3 billion in 4QCY23. Adjusted net income for 1QCY24 was $1 billion.
