Turkish integrated long steel producer Kardemir Karabuk Demir Celik Sanayi ve Ticaret A.S. (Kardemir) has announced its financial results for the first half of the current year.
In the given period, Kardemir registered a net loss of TRY 267.78 million ($36.58 million), compared to a net profit of TRY 170.16 million recorded in the same period of the previous year. The company registered an operating loss of TRY 83.33 million ($11.4 million) in the first half this year, when compared to an operating profit of TRY 233.06 million in the first half of 2019. Kardemir’s sales revenues decreased by 0.6 percent year on year to TRY 3.25 billion ($444.67 million).
In the given period, Kardemir’s consolidated EBITDA was TRY 323.61 million ($44.21 million) compared to TRY 454.73 million in the first half of 2019, while its EBITDA margin fell to 9.9 percent from 13.9 percent in the same period of last year. Meanwhile, the company stated that its product sales volume amounted to 1.18 million mt in the first half this year, falling by 0.8 percent year on year.
In the first half, Kardemir produced 1.24 million mt of crude steel, up by 9.7 percent, while its pig iron production amounted to 1.13 million mt, rising by 8.6 percent, both on year-on-year basis.
Kardemir stated that the downward trend in long steel prices was due to the reduced demand resulting from the uncertainty and imbalances caused by the pandemic in the iron and steel industry. The company also said that scrap and long steel prices are currently increasing as a result of the worldwide awareness in combating the pandemic and the gradual opening up of economies since mid-May.
According to the company’s statement, in April and May this year it temporarily reduced its number of shifts to two from three due to the coronavirus and reduced its production volume by 15-20 percent. In mid-June, the company’s production returned to normal levels. In order to achieve the targeted sales volumes by the end of the year, its production rate is expected to increase in the second half of the current year compared to the first half.