Votorantim Siderurgia, the long steel division of Brazilian holding company Votorantim SA, saw its adjusted EBITDA in Q3 increase 65 percent, year-on-year, to BRL 124 million ($33.2 million), the company said this week while releasing its quarterly results.
The company attributed the stronger adjusted EBITDA to increased steel selling prices in Argentina and Colombia, and to the sale of mining titles in Colombia. The company’s EBITDA margin in Q3 grew to 21 percent from 18 percent in the same quarter of the year prior.
Votorantim Siderurgia said net revenues in Q3 reached BRL 583 million ($156.1 million), 36 percent up, year-on-year, also due to higher steel selling prices in the two countries. Cost of products sold (COGS) in Q3 was BRL 478 million ($127.9 million), 34 percent up, year-on-year.
Votorantim Siderurgia owns Acerias Paz del Rio in Colombia and Acerbrag in Argentina. It merged its former Brazilian operations, Votorantim Siderurgia SA, last year with ArcelorMittal Brazil. The deal was approved by local anti-trust authority Cade in Q1 this year. As a result of the deal, Brazil’s Votorantim Siderurgia SA became a subsidiary of ArcelorMittal Brazil SA, and then was renamed to ArcelorMittal Sul Fluminense.
Holding company Votorantim SA has a 15 percent stake in the long steel business of ArcelorMittal Brazil.
USD = BRL 3.74 (November 9)