ArcelorMittal, the world’s leading integrated steel and mining company, reported its financial results for Q2 and H1 2023, revealing a significant decline in core profit (EBITDA).
The company’s Q2 2023 EBITDA reached USD 2.6 bln, showing a sharp drop of nearly 50pct compared to the year-ago figure of USD 5.16 bln. Similarly, its H1 2023 EBITDA decreased significantly by 57pct YoY, amounting to USD 4.43 bln.
In terms of production, ArcelorMittal’s consolidated crude steel output remained relatively stable at 14.7 mln tons in Q2 2023, but experienced a 5.5pct YoY decline during H1 2023, reaching 29.2 mln tons.
Total steel shipments in Q2 2023 amounted to 14.2 mln tons, slightly lower by 1.4pct compared to the same period in 2022 (14.4 mln tons). In H1 2023, the company’s total steel shipments declined by 3.37pct YoY, totaling 28.7 mln tons.
The company’s sales revenue for Q2 2023 decreased to USD 18.6 bln, down from the previous year’s Q2 revenue of USD 22.1 bln. Similarly, ArcelorMittal’s sales revenue for H1 2023 dropped by 15.6pct YoY to USD 37.1 bln. The decline in revenues was attributed to lower steel shipments and a 14.7pct YoY decrease in average steel selling prices, which were previously boosted by restocking demand following the outbreak of war in Ukraine.
ArcelorMittal’s CEO, Aditya Mittal, commented on the results, expressing satisfaction with the financial performance in the first half of the year. He emphasized the positive impact of recent strategic acquisitions, such as ArcelorMittal Pecem in Brazil and ArcelorMittal Texas HBI in the United States, both of which contributed to higher-than-expected EBITDA. The company remains focused on organic growth projects and investments in lower-carbon supply chains to enhance its ability to produce higher value-added products in high-growth markets.
Looking ahead, ArcelorMittal revised its global steel demand forecast for 2023, excluding China, projecting growth between 1-2pct compared to 2022. This revision was down from the previous estimate of 2-3pct due to softening market conditions in the US, Europe and Brazil.
