Swedish iron ore producer LKAB has issued its financial results for the third quarter and first nine months of the current year.
In the third quarter, the company registered a net profit of SEK 4.57 billion ($407.94 million), compared to a net profit of SEK 6.35 billion in the third quarter of 2021. Sales revenues in the given quarter decreased by 3.9 percent year on year to SEK 12.24 billion ($1.09 billion) due to lower prices for highly upgraded iron ore products and somewhat higher delivery volumes offset by the strong dollar exchange rate, while the company recorded an operating profit of SEK 5.91 billion ($526.98 million) compared to an operating profit of SEK 7.77 billion in the corresponding quarter of the previous year.
In the third quarter this year, the company’s iron ore output amounted to 6.6 million mt, decreasing by 1.5 percent year on year, while its iron ore shipments rose by 7.7 percent year on year to 6.6 million mt.
The company stated that the third quarter’s production was impacted by ongoing production disruptions at the pelletizing plants in Kiruna.
Meanwhile, in the January-September period, the net profit of the company was SEK 12.62 billion ($1.2 billion), falling from the net profit of SEK 20 billion recorded in the first nine months of the previous year. Sales revenues in the given period fell by 7.9 percent year on year to SEK 36.59 billion ($3.26 billion), while the company registered an operating profit of SEK 18.12 billion ($1.61 billion), compared to the operating profit of SEK 24.08 billion in the corresponding period of the previous year. Operating profit was affected by the costs of maintenance actions postponed from the pandemic year of 2021, by production disruptions at the pelletizing plants in Kiruna and by general price rises for energy and input goods.
In the first nine months of this year, the iron ore output of LKAB amounted to 18.6 million mt, falling by seven percent year on year. In the same period, the company's iron ore shipments fell by 3.4 percent year on year to 19.5 million mt.
