Hamilton, Ontario-based Stelco Holdings Inc. today announced financial results of the company for the three months ended March 31, 2019.
Q1 2019 revenue increased CAD 35 million ($25.9 million), or 7 percent, from CAD 482 million ($357.9 million) in Q1 2018, primarily due to a 9 percent improvement in average steel selling prices from CAD 762/nt ($566/nt) in Q1 2018 to CAD 827/nt ($614/nt) in Q1 2019. Shipping volumes remained flat at 612,000 nt in Q1 2019 compared to 613,000 nt in Q1 2018.
Net income for the quarter was CAD 43 million ($31.9 million), up from CAD 29 million ($21.5 million) in the first quarter of 2018.
In a press release, David Cheney, Stelco's Chief Executive Officer, commented: “We have progressed on a number of projects that will improve our cost structure and overall efficiency. In July, we plan to begin work to upgrade our Lake Erie coke batteries which we anticipate could result in up to an additional 100,000 tons of coke that we can sell in the very profitable merchant coke market. We are nearing a final decision on choosing our partner for our co-generation power plant to serve the Lake Erie facility which we believe will generate approximately CAD 20 million ($14.9 million) in annual cost savings with limited capital investment.”
USD = CAD 1.35 (May 2)