Essar Steel reports positive EBITDA for December quarter

Sault Ste. Marie, Ontario-based flat rolled steelmaker Essar Steel Algoma reported on Friday its earnings before interest, taxes, depreciation and amortization (EBITDA). For the quarter ending on December 31, 2011, the EBITDA was $30.2 million while there was a net loss of $50.8 million on shipments of 635,308 tons. The positive EBITDA can be attributed to higher selling prices for their products and lower costs compared to the same three month period of the previous year. Compared to the same period in the previous year shipments were up 0.9 percent and the cost of steel products per ton was reduced by 0.9 percent. Steel revenue for the quarter ending on December 31, 2011 was $490.5 million due to improved pricing.