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 7.67 billion ($884.58 million), compared to a net profit of SEK 1.99 billion in the second quarter of 2020. Sales revenues in the given quarter increased by 97.9 percent year on year to SEK 14.75 billion ($1.70 billion), while the company recorded an operating profit of SEK 9.16 billion ($1.05 billion) compared to an operating profit of SEK 1.88 billion in the corresponding quarter of the previous year. Higher prices for highly upgraded iron ore products and higher delivery volumes were offset by a lower dollar exchange rate and somewhat higher costs.
In the second quarter this year, the company’s iron ore output amounted to 5.9 million mt, decreasing by 1.6 percent year on year, while its iron ore shipments rose by 4.5 percent year on year to 6.9 million mt.
The company stated that the second quarter’s production was impacted by disruptions mainly at the pelletizing plants in Kiruna, as well as extended maintenance shutdowns in connection with the coronavirus restrictions.
Meanwhile, in the first half, the net profit of the company was SEK 13.65 billion ($1.57 billion), rising from the net profit of SEK 3.88 billion recorded in the first half of the previous year. Sales revenues in the given period rose by 74.3 percent year on year to SEK 27.0 billion ($3.11 billion), while the company registered an operating profit of SEK 16.31 billion ($1.88 billion), compared to the operating profit of SEK 5.07 billion in the corresponding period of the previous year.
In the first six months of this year, the iron ore output of LKAB amounted to 13.3 million mt, falling by 1.5 percent year on year. In the same period, the company's iron ore shipments remained stable year on year at 13.9 million mt.