Swedish iron ore producer LKAB has issued its financial results for the second quarter and first half of the current year.
In the second quarter, the company registered a net profit of SEK 4.23 billion ($408.39 million), compared to a net profit of SEK 7.67 billion in the second quarter of 2021. Sales revenues in the given quarter decreased by 16 percent year on year to SEK 12.37 billion ($1.19 billion), while the company recorded an operating profit of SEK 5.72 billion ($552.06 million) compared to an operating profit of SEK 9.16 billion in the corresponding quarter of the previous year.
In the second quarter this year, the company’s iron ore output amounted to 5.7 million mt, decreasing by 3.3 percent year on year, while its iron ore shipments fell by 10.4 percent year on year to 6.2 million mt.
The company stated that the second quarter’s production was impacted by production disruptions at the pelletizing plants in Kiruna, as well as extended maintenance shutdowns.
Meanwhile, in the first half, the net profit of the company was SEK 8.04 billion ($776.61 million), falling from the net profit of SEK 13.65 billion recorded in the first half of the previous year. Sales revenues in the given period fell by 9.8 percent year on year to SEK 24.35 billion ($2.35 billion), while the company registered an operating profit of SEK 12.21 billion ($1.18 billion), compared to the operating profit of SEK 16.31 billion in the corresponding period of the previous year. Profits were affected mainly by lower prices for highly upgraded iron ore products and a lower delivery volume. A stronger dollar rate had a positive effect.
In the first six months of this year, the iron ore output of LKAB amounted to 12.1 million mt, falling by nine percent year on year. In the same period, the company's iron ore shipments fell by 7.2 percent year on year to 12.9 million mt.