Turkey-based steel producer Kocaer Çelik Sanayi ve Ticaret A.S. (Kocaer Çelik) has announced its financial and operational results for the January-September period this year.
In the first nine months of the year, Kocaer Çelik achieved a net profit of TRY 453.65 million ($24.38 million) compared to a net profit of TRY 104.04 million in the same period last year. The company registered an operating profit of TRY 1.24 billion ($66.66 million) in the first nine months this year, up by 220.3 percent year on year. Kocaer Çelik’s sales revenues increased by 170.6 percent year on year to TRY 6.74 billion ($362.58 million).
Meanwhile, the company’s EBITDA in the first nine months increased by 203,8 percent year on year to TRY 1.29 billion ($69.68 million), while its EBITDA margin increased to 19.2 percent from 17.1 percent.
In the given period, Kocaer Çelik’s product sales volume amounted to 389,626 mt, rising by 12.5 percent year on year. In the first nine months, the share of the company’s value-added products in its total sales volume increased to 41.8 percent, from 31.7 percent in the same period of last year. The company mainly prefers order-based production and operates with a minimum stock of products and raw materials.
According to the company’s statement, steel demand is experiencing its steepest decline since the 2008 financial crisis, due to high energy prices and global recession concerns. The global recession concerns limited steel demand, causing scrap and iron ore prices to decline.
Despite the fluctuations recorded in the global market, Kocaer Çelik’s expectations for the remainder of 2022 remain positive and it estimates that its total sales revenues will increase by more than 100 percent in 2022 compared to the previous year.