Canada-based steel producer Algoma Steel has announced its financial and operations results for the second quarter and the first half ended September 30, 2022, of the fiscal year 2022-23.
In the second quarter, the company registered a net income of CDN $87.2 million, compared to CDN $288.2 million in the same period last year due to a decrease in the selling price of steel and an increase in costs, while its revenues totaled CDN$599.2 million, compared to CDN$1.01 billion in the second quarter last year.
In the first half, Algoma Steel registered a net income of CDN$388.7 million, down by 21 percent, while its revenues amounted to CDN$1.53 billion, decreasing by 14.7 percent, both year on year.
The company’s shipments in the second quarter totaled 435,202 mt, down by 25.9 percent from 587,340 mt recorded in the same period last year. The decline in shipments was largely attributable to previously disclosed plate mill modernization commissioning delays and production shortfalls at the company’s direct strip production complex.
In November last year, the company decided to construct two new state-of-the-art electric arc furnaces to replace its existing blast furnace and basic oxygen steelmaking operations, as SteelOrbis previously reported. The project is expected to take two years to complete and is advancing as planned. Following the transformation to EAF steelmaking, Algoma’s plant is anticipated to have an annual raw steel production capacity of approximately 3.7 million mt, with the company’s annual carbon emissions reduced by approximately 70 percent.
