Algoma Steel Group Inc., a leading Canadian producer of hot and cold rolled steel sheet and plate products, announced results for its fiscal fourth quarter and full year ended March 31, 2023.
During the fourth quarter, the company generated revenue of CAD 677.4 mln (USD 513 mln), a decrease compared to CAD 941.8 mln from the same quarter in the previous year. The net loss for the quarter amounted to CAD 20.4 mln (USD 15.45 mln), in contrast to a net income of CAD 242.9 mln during the prior-year quarter. This decline was primarily attributed to lower steel selling prices, increased costs due to the substitution of internally produced coke with purchased coke, and higher purchase prices for key inputs such as metallurgical coke and coal.
Adjusted EBITDA for the fourth quarter was CAD 47.9 mln (USD 36.2 mln), in comparison to CAD 334.4 mln in the prior-year quarter. Shipments for the fourth quarter rose by 4.5pct to 571,647 tons, as opposed to 547,217 tons in the previous year’s quarter.
For the entire fiscal year 2023, Algoma Steel’s revenue totaled CAD 2.77 bln (USD 2 bln), a decrease compared to CAD 3.8 bln in the previous year. Net income for fiscal year 2023 was CAD 298.5 mln (USD 226 mln), in contrast to CAD 857.7 mln in the prior year. Adjusted EBITDA for fiscal year 2023 amounted to CAD 452.3 mln (USD 343 mln), compared to CAD 1,503.2 mln in the prior year. Shipments for fiscal year 2023 decreased by 12.8pct to 2 mln tons, compared to 2.29 mln tons in the prior year.
Michael Garcia, the company’s Chief Executive Officer, commented, “Our results for the fiscal fourth quarter of 2023 were in line with our previously disclosed outlook. Following a period of dynamic commodity prices and operational improvements, the quarter saw plate and strip operations return to normal production levels. We expect to continue this momentum into fiscal 2024, with expected strong first quarter shipments and operating cash flow.”
Mr. Garcia concluded, “In fiscal 2024, we are continuing our commitment to focused execution at our existing facilities while simultaneously advancing construction of our transformative EAF project.”
Algoma Steel is constructing two EAFs that will eventually replace its existing blast furnace and basic oxygen steelmaking units.
Upon the completion of the transition to EAF steelmaking, Algoma’s facility is projected to have an annual raw steel production capacity of approximately 3.7 mln tons, matching its downstream finishing capacity. This shift is expected to reduce the company’s annual carbon emissions by roughly 70pct.
1 USD / 1.32 CAD
