Swedish-based iron ore producer LKAB has issued its financial results for the third quarter and first nine months of the current year.
In the third quarter, the company registered a net profit of SEK 509 million ($56.31 million), compared to a net loss of SEK 5.64 billion in the third quarter of 2015. Sales revenues in the given quarter increased by 1.3 percent year on year to SEK 4.25 billion ($471.12 million), thanks to higher delivery volumes, while the company recorded an operating profit of SEK 273 million ($30.2 million) compared to an operating loss of SEK 6.95 billion in the corresponding quarter of the previous year.
In the third quarter this year, the company’s iron ore output amounted to 6.8 million mt, increasing by 15 percent year on year, while its iron ore shipments rose by 16 percent year on year to 7.2 million mt.
In the first nine months of the year, the net profit of the company was SEK 628 million ($69.48 million), compared to a net loss of SEK 5.45 billion in the same period of the previous year. Sales revenues in the given period decreased by one percent year on year to SEK 11.82 billion ($1.3 billion), mainly due to lower prices and currency effects, while the company registered an operating profit of SEK 167 million ($18.47 million), compared to the operating loss of SEK 6.8 billion in the corresponding period of the previous year.
In the January-September period, the iron ore output of LKAB amounted to 19.7 million mt, rising by 10 percent, while the company's iron ore shipments increased by 16 percent to 20.1 million mt, both year on year.
LKAB expects the market situation to remain largely unchanged in the current year. The oversupply situation in iron ore fines will remain or increase. LKAB’s strategy to maximize pellet production remains in place. With iron ore prices expected to remain low, LKAB is intensifying its adaptation work, focusing on profitability, productivity improvements and cost cutting in order to improve competitiveness.