Africa's largest steel producer, ArcelorMittal South Africa, has announced its financial results for the first half of the current year, reporting a net loss of ZAR 450 million ($33.67 million), compared to a net loss of ZAR 111 million in the previous year.
In the first six months, the company's EBITDA amounted to ZAR 282 million ($21.1 million), decreasing from ZAR 641 million in the same period of the previous year. ArcelorMittal South Africa's sales revenue in the given period increased by 3.4 percent year on year to ZAR 17 billion ($1.27 billion), following the increase in sales volumes. The company's steel shipments in the first six months were up 10.3 percent, with export shipments falling by 5.1 percent, while local shipments increased by 15 percent, all year on year.
In the given period, ArcelorMittal South Africa's overall liquid steel production was 2.52 million mt, 1.67 percent lower compared to the same period of the previous year, while capacity utilization for flat steel was higher at 83 percent compared to 80 percent in the first half of 2015, and long steel capacity utilization increased from 72 percent to 83 percent.
The company stated that, although the average net realizable steel price is expected to improve, costs are also expected to increase in the second half of this year. Under the current trading conditions, shipments in the second half are expected to remain consistent with the first half.