Steel Mills

Essar Steel Algoma Posts Strong 2nd Quarter

Written by Sandy Williams


Essar Steel Algoma reported CDN $85.2 million EBITDA for second quarter FY 2015 ending September 30, 2014. Net income was CDN $52.9 million compared to a net losses of CDN $80.8 million in Q1 FY 2015 and CDN $110.1 million in the same period in 2013.

Shipment volume increased 28 percent from the previous quarter to 680,092 tons. The combination of higher volume, higher selling prices, improved mix and lower costs contributed to the marked improvement in performance. Steel revenue for Q2 was CDN $550 million. Average net sales realization was $757 per ton. (1 CDN $ = USD $0.89)

“As we enter into the final stage of the refinancing process this week we are starting to witness the results of our turnaround efforts,” said Essar Steel Algoma Chief Executive Officer Kalyan Ghosh. “ Step changes in both productivity and conversion costs combined with improving macro economic indicators are positively reflected in our second quarter results. As we commence our seasonal raw material build we continue to optimize production levels to ensure reliable supply to our customers over the coming winter.”

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