Sol Coqueria Tubarao, a joint venture (JV) between local steelmaker ArcelorMittal Brazil and SunCoke, posted increased results in Q1 on a year-on-year basis, SunCoke said while announcing its quarterly results.
The coke facility, located in the city of Vitoria, in the Brazilian state of Espirito Santo, saw adjusted EBITDA surge 91.3 percent in Q1, year-on-year, to $4.4 million.
The company attributed the increased EBITDA to incremental technology and licensing fees related to the addition of “certain patents to our existing intellectual property licensing agreement in the fourth quarter of 2016.”
When compared to Q4 2016, adjusted EBITDA at the coke facility fell 47 percent, quarter-on-quarter, from $8.3 million.
Revenues at Sol Coqueria Tubarao rose 40.2 percent in Q1, year-on-year, to $10.8 million.
SunCoke said sales volumes at Sol Coqueria Tubarao in Q1 rose 4.8 percent, year-on-year, but dropped 2.5 percent, quarter-on-quarter, to 435,000 mt, from 415,000 mt in Q1 2016 and 446,000 mt in Q4 2016.
SunCoke said it also received in Q1 the second installment of $20.5 million from ArcelorMittal Brazil, after the Brazilian steelmaker redeemed SunCoke's indirectly held preferred and common equity interest in Sol Coqueria Tubarao for a combined $41.0 million, as previously reported by SteelOrbis. SunCoke received the first installment of $20.5 million in Q4 2016.