ArcelorMittal South Africa : Financial results for the six months ended 30 June 2022
July 28, 2022 at 04:08 am EDT
Share
FINANCIAL RESULTS
for the six months ended 30 June 2022
CONTENTS
01
02
03
04
Key messages and salient features
Kobus Verster
Operations and market review
Kobus Verster
Financial review and capital allocation
Suretha van Wyk
Sustainability and growth
Kobus Verster
05
Conclusion and outlook
Kobus Verster
KEY MESSAGES AND SALIENT FEATURES
Kobus Verster
OVERVIEW AND SALIENT FEATURES
+R373 million (12%)
+R543 million
STRONG EBITDA
HEADLINE
PROFITABILITY
EARNINGS
2022 H1: R3 591 million
2022 H1: R3 025 million
2021 H1: R3 218 million
2021 H1: R2 482 million
Successfully delivered against outlook
Sales volumes down by 8% to 1,2 million tonnes
Crude steel production down by 30% to 1,1 million tonnes due to rail service unavailability, electricity load-shedding and labour disruptions
Realised a 30% increase in rand steel prices
(22%)
-R1 695 million (61%)
-R195 million (44%)
NET DEBT
NET FINANCE
POSITION
CHARGES
2022 H1: R1 087 million
2022 H1: R250 million
2021 H1: R2 782 million
2021 H1: R445 million
Fixed cost of R3 448 million down by R604 million (-15%) against 2021 H2
New Value Plan Programme delivered R577 million in challenging operating environment
Free cash flow of R177 million (2021 H1: R985 million) after CAPEX (R693 million), the final settlement of a dollar-denominated trade payable with extended credit terms (R628 million), and other temporary investments in working capital (R1 951 million)
EBITDA (Rm)
Headline earnings (Rm)
Net debt (Rm)
2022 H1
3 591
2022 H1
3 025
2022 H1
1 087
2021 H2
5 351 +12%
2021 H2
4 378 +22%
2021 H2
1 258
-61%
2021 H1
3 218
2021 H1
2 482
2021 H1
2 782
2020 H2
1 293
2020 H2
570
2020 H2
3 838
2020 H1
-1 256
2020 H1
-2 613
2020 H1
3 702
Page 4
OVERVIEW AND SALIENT FEATURES (cont.)
International HRC1 and Rebar2 ($/t)
1 400
6%
MetalBulletin
Average $975/t
Average $1 035/t
1 200
1 000
Platts,
800
600
Average $710/t
13%
Average $802/t
S&P
400
Source:
200
2021
2021
2021
2021
2022
2022
Q1
Q2
Q3
Q4
Q1
Q2
Average international
Average international
HRC price
Rebar price
International hard coking coal3 ($/t)
700
600
500
Platts
400
S&P
300
Average $133/t
250%
Average $466/t
Source:
200
100
0
2021
2021
2021
2021
2022
2022
Q1
Q2
Q3
Q4
Q1
Q2
Hard Coking Coal FOB Australia
International iron ore ($/t)
300
250
S&P Platts
200
150
Source:
100
27%
Average $147/t
Average $201/t
50
2021
2021
2021
2021
2022
2022
Q1
Q2
Q3
Q4
Q1
Q2
Iron Ore Lump EPP
International scrap ($/t)
700
PlattsS&P
600
500
Source:
400
17%
Average $466/t
Average $545/t
300
2021
2021
2021
2021
2022
2022
Q1
Q2
Q3
Q4
Q1
Q2
Scrap (East Asia)
1HRC: Hot Rolled Coil. Average domestic price between
2
Rebar: Average price between China FOB and Turkey FOB
N. Europe, Japan, Midwest, China, Turkey, India and Russia
3
FOB Australia
Page 5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
Original Link
Original Document
Permalink
Disclaimer
ArcelorMittal South Africa Limited published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 08:07:07 UTC.
ArcelorMittal South Africa Ltd ("AMSA") is the South African leading in steel producing. Net sales break down by family of products as follows:
- stee products (95.1%): hot and cold rolled sheets, coated sheets, bars, billets, tubes, profiles, etc.;
- coke and chemicals (4.9%).
Net sales are distributed geographically as follows: South Africa (86%), Africa (8.4%), Europe (2.5%), America (1.9%), Asia (1.1%) and other (0.1%).
ARCELORMITTAL SOUTH AFRICA LIMITED 
