Chilean steelmaker CAP Acero, which is part of CAP Group, went from a net profit of $1.15 million in H1 2018 to a net loss of $25.4 million in H1 2019, holding company CAP Group said.
The net loss for the company’s steelmaking business was due to lower steel selling prices and reduced steel sales volumes.
Net revenues for CAP Acero in H1 2019 was $234.7 million, 17.6 percent down, year-on-year. The company reported an EBITDA loss of $21.2 million in H1 2019, as compared to the $18.6 million EBITDA it posted in H1 2018.
The company attributed the diminished revenues and EBITDA to weaker pellets supplies in Q1 2019, an accident at its Port of Guacolda II and to the halt of the company’s No. 1 blast furnace in March 2019 due to technical reasons.
CAP Acero’s steel sales volumes in H1 dropped 15.1 percent, year-on-year, to 321,816 mt.
As for holding company, CAP Group, they reported a net profit of $830,000 in H1, as compared to the net loss of $23.1 million it posted in H1 2018.