SSAB sees highest-ever quarterly operating profit in Q2 amid strong demand

Thursday, 22 July 2021 11:19:59 (GMT+3)   |   Istanbul
       

Swedish specialty steel producer SSAB has posted its financial results for the second quarter and the first half of the current year.

The company reported a net profit of SEK 3.22 billion ($370.99 million) in the second quarter, compared to a net loss of SEK 280 million in the corresponding period of 2020 and a net profit of SEK 1.51 billion in the first quarter this year. The company’s sales revenues amounted to SEK 23.67 billion ($2.73 billion) in the second quarter, increasing by 20.4 percent quarter on quarter and up by 56.2 percent year on year. In the same period, the company reported an operating profit of SEK 4.08 billion ($470.28 million) compared to an operating profit of SEK 1.99 billion recorded in the first quarter this year. SSAB stated that it achieved its highest-ever quarterly operating profit in the second quarter, driven by strong demand, high steel prices and stable production. 

In the first half this year, SSAB reported a net profit of SEK 4.73 billion ($545.19 million), compared to a net loss of SEK 102 million in the corresponding period of 2020, while the company’s sales revenues amounted to SEK 43.33 billion ($4.99 billion) in the first half, increasing by 17.7 percent year on year. The company’s operating profit in the first half this year amounted to SEK 6.07 billion ($700 million), compared to an operating profit of SEK 92 million in the first six months last year.

Meanwhile, in the second quarter of this year, SSAB’s crude steel output increased by 21.9 percent to 2.17 million mt, while its finished steel production stood at 2.05 million mt, up by 30.5 percent, both year on year. Its steel shipments in the given period went up by 30.9 percent year on year to 1.86 million mt. In the first half this year, the company’s crude steel output increased by 10.6 percent to 4.27 million mt, while its finished steel production stood at 3.98 million mt, up by 12.7 percent, both year on year. Its steel shipments in the given half went up by 14.9 percent year on year to 3.69 million mt.

According to SSAB, local steel demand during the second quarter of the current year was considered to be very strong, driven by customer restocking. SSAB also said that it anticipates that global demand for high-strength steel will be very strong during the third quarter in more or less all markets in all geographies. The company also noted that shipments are expected to remain at a high level during the third quarter of 2021, considering seasonality during the given quarter, albeit significantly lower than the record-high shipments reported in the second quarter.


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