Australia-based mining and materials company Arrium Limited has issued its financial results for the financial year 2013-14 ended June 30.
In the given period, Arrium achieved an underlying net profit of A$296 million, rising 83 percent compared to the previous financial year. The company's sales revenues increased by 2.4 percent year on year to A$7 billion in the given period, mainly due to increased export iron ore sales, partly offset by lower sales in the steel business.
According to Arrium, the Whyalla Port continued to perform to expectations following completion of the expansion to double its capacity to approximately 13 million mt per year.
Arrium stated that demand for iron ore remained strong during the year, underpinned by continued strong steel production in China. Market prices were relatively strong through December before trending down over the balance of the year. The decline was due to factors including an increased supply of iron ore, the tightening of credit in China, higher port stocks, and increased discounting, particularly related to an increase in supply of lower grade ores in the fourth quarter.