Swedish-based 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 loss of SEK 214 million ($25.24 million), compared to a net loss of SEK 416 million in the second quarter of 2015. Sales revenues in the given quarter increased by 6.5 percent year on year to SEK 3.8 billion ($448.28 million), while the company recorded an operating loss of SEK 277 million ($32.6 million) compared to an operating loss of SEK 228 million in the corresponding quarter of the previous year.
In the second quarter this year, the company’s iron ore output amounted to 6.1 million mt, increasing by 5.1 percent year on year, while its iron ore shipments rose by 26.4 percent year on year to 6.7 million mt.
In the first half, the net profit of the company was SEK 119 million ($14 million), decreasing by 37.3 percent year on year. Sales revenues in the given period decreased by 2.3 percent year on year to SEK 7.56 billion ($891.8 million), while the company registered an operating loss of SEK 105 million ($12.4 million), compared to the operating profit of SEK 147 million in the corresponding period of the previous year.
In the first six months of this year, the iron ore output of LKAB amounted to 12.9 million mt, rising by 7.5 percent year on year. In the same period, the company's shipments increased by 16 percent to 13 million mt, while its iron ore stocks amounted to 1.7 million mt at the end of the period.
LKAB expects the market situation to remain largely unchanged in 2016. With iron ore prices expected to remain low, LKAB is intensifying its adaptation work, focusing on productivity improvements and cost cutting in order to improve competitiveness. Its strategy to maximize pellet production remains in place, while demand for LKAB’s pellet products is expected to be stable.