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 8.02 billion ($785.29 million) in the second quarter, compared to a net profit of SEK 3.22 billion in the corresponding period of 2021 and a net profit of SEK 6.01 billion in the first quarter this year. The company’s sales revenues amounted to SEK 35.51 billion ($3.47 billion) in the second quarter, increasing by 12.4 percent quarter on quarter and up by 50.0 percent year on year, due to higher steel prices. In the same period, the company reported an operating profit of SEK 10.39 billion ($1.01 billion) compared to an operating profit of SEK 8.37 billion recorded in the first quarter this year.
In the first half this year, SSAB reported a net profit of SEK 14.04 billion ($1.37 billion), compared to a net profit of SEK 4.73 billion in the corresponding period of 2021, while the company’s sales revenues amounted to SEK 67.09 billion ($6.56 billion) in the first half, increasing by 54.8 percent year on year. The company’s operating profit in the first half this year amounted to SEK 18.77 billion ($1.83 billion), compared to an operating profit of SEK 6.07 billion in the first six months last year.
Meanwhile, in the second quarter of this year, SSAB’s crude steel output decreased by 8.3 percent to 1.98 million mt, while its finished steel production stood at 1.83 million mt, down by 10.7 percent, both year on year. Its steel shipments in the given period went down by 2.8 percent year on year to 1.71 million mt. Production and shipments were down due to lower slab inventories and a prolonged start-up phase, following the outage of one of the blast furnaces in Raahe during the first quarter. In the first half this year, the company’s crude steel output decreased by 12.6 percent to 3.73 million mt, while its finished steel production stood at 3.55 million mt, down by 10.8 percent, both year on year. Its steel shipments in the given half went down by 8.6 percent year on year to 3.37 million mt.
According to SSAB, the market outlook is uncertain amid rising inflation, a shortage of components and the risks of a continued fallout from the war in Ukraine. The market in Europe is expected to be characterized by a seasonal slowdown, whereas the heavy plate market in North America is assessed to be relatively stable. Realized prices are expected to be significantly lower during the third quarter, compared to the high level seen in the prior quarter.