Swedish-based iron ore producer LKAB has issued its financial results for the full year of 2016.
In 2016, the company registered a net loss of SEK 978 million ($180.14 million), compared to a net loss of SEK 5.68 billion in the previous year. Sales revenues in the given year increased by 0.88 percent year on year to SEK 16.34 billion ($1.8 billion), while the company recorded an operating loss of SEK 1.67 billion ($185.39 million) compared to an operating profit of SEK 7.15 billion in 2015.
In the given year, the company’s iron ore output amounted to 26.9 million mt, rising by 9.8 percent year on year, while its iron ore shipments increased by 11.5 percent to 27 million mt compared to 2015.
LKAB stated that it expects the market situation to remain largely unchanged in the current year. The oversupply situation within iron ore fines remains, which means continued pressure on iron ore prices and thus also on the company’s profitability. With iron ore prices expected to remain low, LKAB is continuing its adaptation work, focusing on profitability, productivity improvements and cost cutting in order to improve competitiveness.