Chilean iron ore and steel producer Grupo CAP posted a net loss of $167 million for H1 2023, against a net profit of $215.5 million in the same period of 2022.
According to the company, the net loss derives from provisions for losses, in the amount of $149 million, in assets, plant and equipment of the group’s steel producer Siderurgica Huachipato, recognizing a lower-than-expected present value of the future cashflow generated by these assets.
Under the same comparative basis, net sales declined by 10.5 percent to $1.386 billion, while the EBITDA declined by 47.2 percent to $127 million.
In the mining area, Compania Minera del Pacifico (CMP) the net profit has reached $138 million, against $295.6 million previously, with iron ore sales increasing by 11.7 percent to 7.7 million mt.
In the steel production area, Compania Siderurgica Huachipato (CSP), there was a net loss of $279 million, against a net loss of $9.1 million previously.
In the other areas of the group, steel processing registered a net loss of $4.2 million, against a net profit of $6.1 million previously, while in the infrastructure area the net profit achieved $10.6 million, against $10.8 million previously.
CAP’s general Manager, Nicolas Burr, mentioned that the company has a plan for Siderurgica Huachipato, destined to reduce production costs and improve its production line in the medium term.