AMNS India earnings rise 17% to $470 million

The company had entered into the Indian steel market by acquiring the erstwhile Essar Steel through the insolvency route in December 2019.

AMNS iNDIA
In March 2021, AMNS India signed a memorandum of understanding with the Odisha government with the aim of building an integrated steel plant with a 12 MTPA capacity at Kendrapara.

AMNS India, a joint venture between ArcelorMittal and Nippon Steel, on Thursday reported a 16.6% rise in EBITDA to $470 million for the January-March quarter of current year on contribution from external sale of pelltets from the newly-commissioned plant in Odisha even as its steel shipments remained flat.

The company had entered into the Indian steel market by acquiring the erstwhile Essar Steel through the insolvency route in December 2019. AMNS Inia had reported $403 million earnings before interest tax depreciation and amortisation (Ebitda) in the January-March quarter last year, said ArcelorMittal which has 60% stake in the company. AMNS India, like ArcelorMittal, follows a January-December financial year.

The company said “contribution from external sale of pellets from the newly commissioned Odisha plant offset in part by a negative price cost impact.” On account of a planned maintenance, AMNS India’s crude steel production fell 5.2% to 1.73 million tonnes in the first quarter of the current year. Its steel shipment was flat at 1.73 MT compared with 1.7 MT in the January-March quarter of 2020.

The company said its plan to debottleneck existing operations to achieve 8.8 MT capacity at teh Hazira unit is currently “underway” for the completion by the end of 2023. Also, further expansion of the Hazira facility to take its capacity to at least 14.4 MT is in “advance preparation”. “Advanced discussions with vendors to close, engineering and design work to start soon,” it said, adding that the company was waiting for final environmental clearance.

In March 2021, AMNS India signed a memorandum of understanding with the Odisha government with the aim of building an integrated steel plant with a 12 MTPA capacity at Kendrapara. “A pre-feasibility study report was submitted to the state government in 3Q 2021, and AMNS India is currently engaging with the government for further studies and clearances,” it said.

AMNS India’s parent AreclorMittal’s net income for the January-March quarter was at $4.1 billion against $2.28 billion a year ago, despite the overshadow of the Ukraine war. However, the company sees a slight contraction in steel consumption in the current year compared with 2021.

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