Outokumpu sees higher net profit for H1

Monday, 08 August 2022 16:05:25 (GMT+3)   |   Istanbul
       

Finland-based stainless steel producer Outokumpu has announced its financial results for the second quarter and the first half of the current year, registering a net profit of €385 million in the second quarter compared to a net profit of €129 million in the same quarter last year and a net profit of €251 million in the previous quarter. In the given quarter, the company’s sales revenues increased by 57.6 percent year on year and by 6.9 percent quarter on quarter to €2.95 billion. In the second quarter this year, the company’s adjusted EBITDA was €547 million, compared to €223 million in the same quarter of last year.

In the first half this year, the company registered a net profit of €636 million compared to a net profit of €212 million in the same half of the previous year, while the company’s sales revenues in the first half this year rose by 61.1 percent year on year to €5.71 billion. In the given period, Outokumpu’s adjusted EBITDA was €923 million, compared to €400 million in the first half of 2021.

Outokumpu’s stainless steel deliveries in the second quarter this year decreased by 7.0 percent year on year to 603,000 mt, while in the first half this year the company’s stainless steel deliveries rose by 1.3 percent year on year to 1.25 million mt.

Outokumpu’s president and CEO Heikki Malinen said that the market environment has been favorable, but they have started to see some softening lately. The CEO stated that in the first half of 2022 imports from Asia into Europe have increased and distributors’ inventory levels have continued to increase, which has had a negative impact on demand. Also, Malinen pointed out that global cost inflation has started to impact Outokumpu, and they are trying their best to mitigate the negative impacts on their profitability. Meanwhile, in Europe, the war in Ukraine has led to an energy crisis with increased energy prices and uncertain availability for next winter.

The company stated that its stainless steel deliveries in the third quarter are expected to decrease 10-20 percent compared to the second quarter, but prices in the already received orders remained at a high level. In the given period, energy costs are expected to increase and impact the ferrochrome market. The company’s adjusted EBITDA in the third quarter is expected to be lower compared to the second quarter.


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