Swedish-based iron ore producer LKAB has issued its financial results for the full year of 2017.
In 2017, the company registered a net profit of SEK 4.8 billion ($607.32 million), compared to a net loss of SEK 978 million in the previous year. Sales revenues last year increased by 44 percent year on year to SEK 23.49 billion ($2.97 billion), while the company recorded an operating profit of SEK 6.02 billion ($761.64 million) compared to an operating loss of SEK 1.67 billion in 2016, mainly as a result of improved earnings from price and currency hedging.
In the year in question, the company’s iron ore output amounted to 27.2 million mt, rising by 1.1 percent year on year, while its iron ore shipments increased by 2.2 percent to 27.6 million mt compared to 2016.
LKAB stated that it assesses that the oversupply situation within iron ore fines will continue, which is putting pressure on iron ore prices; at the same time, the premium for highly upgraded iron ore products is expected to remain high. Demand for LKAB’s pellets continues to be strong and the strategy of maximizing pellet production remains in place. LKAB is continuing its work focusing on profitability and productivity improvements to enhance competitiveness. Work on the urban transformation is in an intensive phase with continued provisions and an increased number of acquisitions, which means increased expenditure over the coming year.