Outokumpu sees lower sales revenues in H1, expects reduced EBITDA in Q3

Monday, 07 August 2023 11:24:01 (GMT+3)   |   Istanbul
       

Finland-based stainless steel producer Outokumpu has announced its financial results for the second quarter and the first half of the current year.

The company registered a net profit of €89 million in the second quarter compared to a net profit of €338 million in the same quarter last year and a net profit of €97 million in the previous quarter. In the given quarter, the company’s sales revenues decreased by 28.8 percent year on year due to the weaker market environment and were down by 34.6 percent quarter on quarter to €1.91 billion. In the second quarter this year, the company’s adjusted EBITDA was €190 million, compared to €491 million in the same quarter of last year.

In the first half this year, the company registered a net profit of €186 million compared to a net profit of €567 million in the same half of the previous year due to lower realized prices, while the company’s sales revenues in the first half this year fell by 25.5 percent year on year to €3.91 billion. In the given period, Outokumpu’s adjusted EBITDA was €394 million, compared to €842 million in the first half of 2022.

Outokumpu’s stainless steel deliveries in the second quarter this year decreased by 10.3 percent year on year to 502,000 mt, while in the first half this year the company’s stainless steel deliveries fell by 13.5 percent year on year to one million mt.

The company stated that its stainless steel deliveries in the third quarter are expected to decrease 5-15 percent compared to the second quarter, in line with the seasonal pattern. The planned maintenance break in the ferrochrome business is expected to have an approximately €10 million negative impact on the business area’s adjusted EBITDA. The company expects its adjusted EBITDA in the third quarter to be lower compared to the second quarter.


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