Swedish iron ore producer LKAB has issued its financial results for the fourth quarter and full year of 2021.
In the fourth quarter, the company registered a net profit of SEK 2.59 billion ($280.14 million), compared to a net profit of SEK 3.07 billion in the fourth quarter of 2020. Sales revenues in the given quarter decreased by 0.2 percent year on year to SEK 9.06 billion ($977.02 million), while the company recorded an operating profit of SEK 2.81 billion ($303.43 million) compared to an operating profit of SEK 3.62 billion in the corresponding quarter of the previous year. Operating profit was affected mainly by the costs of extended maintenance shutdowns as well as costs relating to a new Enterprise Resource Planning system and a donation to a newly established foundation.
In the fourth quarter last year, the company’s iron ore output amounted to 6.7 million mt, decreasing by 1.4 percent year on year, while its iron ore shipments fell by 2.8 percent year on year to 6.8 million mt.
The company stated that the fourth quarter’s production was impacted by production disruptions and by an extended maintenance shutdown associated with pandemic measures in the spring.
Meanwhile, in the full year the net profit of the company was SEK 22.60 billion ($2.43 billion), rising from the net profit of SEK 9.75 billion recorded in the previous year. Sales revenues in the given period rose by 43.9 percent year on year to SEK 48.81 billion ($5.26 billion), while the company registered an operating profit of SEK 26.89 billion ($2.89 billion) compared to the operating profit of SEK 11.65 billion in the previous year.
In 2021, the iron ore output of LKAB amounted to 26.7 million mt, falling by 1.4 percent year on year. In the same period, the company's iron ore shipments decreased by 5.2 percent year on year to 27.0 million mt.