Brazilian flats steelmaker Usiminas went from a BRL 123 million ($39.1 million) net loss in Q2 2016 to a BRL 176 million ($55.9 million) net profit in Q2 this year, the company said on Friday while releasing its quarterly results.
Usiminas attributed the net profit to a BRL 132.2 million deal it closed with the Port of Sudeste, to end a dispute over the extent of the obligations both parties assumed when signing a port services contract in February 2011.
According to Usiminas, net revenues in Q2 rose 26.6 percent, year-on-year, and 9 percent, quarter-on-quarter, to BRL 2.5 billion ($817 million).
Steel sales volumes in Q2 declined 20 percent, year-on-year, and 2 percent, quarter-on-quarter, to 629,000 mt, while iron ore sales volumes in the same period reached 990,000 mt, 10.1 percent up, year-on-year, and 6 percent up, quarter-on-quarter.
Usiminas said the increased quarter-on-quarter revenues were a result of increased sales volumes and improved selling prices.
The company’s EBITDA in Q2 surged to BRL 711 million ($226.1 million), from BRL 61 million ($19.4 million) in Q2 2016.
EBITDA margin in Q2 was 28 percent, up from 3 percent in Q2 2016.
USD = BRL 3.13 (July 28)