Lakshmi N Mittal, who is currently Chairman and CEO, will become Executive Chairman.
The world’s largest steel maker had posted a net loss of USD 1,882 million in the year-ago quarter, the company said in a statement.
For the whole year (2020), the company reported a net loss of USD 733 million, as against a net income of USD 2,454 million in 2019.
ArcelorMittal follows January to December fiscal year.
Commenting on the company’s financial performance, ArcelorMittal Executive Chairman Lakshmi N Mittal said, 2020 was a year of enormous challenge as countries, societies and businesses across the world grappled with the disruption caused by the COVID-19 pandemic.
“The impact on the steel industry was significant. However, the resilience and enterprise shown by its workforce across the business enabled ArcelorMittal to deliver a solid operating performance in times of adversity,” Mittal said.
During the December quarter, the company produced 18.8 million tonne (MT) crude steel, registering a fall of 5 per cent from 19.8 MT a year ago. The total shipments were at 17.3 MT compared to 19.7 MT, while sales in fourth quarter of 2020 were at USD 14.2 billion as compared to USD 15.5 billion in the same quarter in 2019.
During the entire 2020, the company’s output at 71.5 MT was also down by 20 per cent to 89.8 MT in 2019. Total steel shipments for 12 months in 2020 were 69.1 MT representing a decrease of 18.2 per cent as compared to 84.5 MT in full 2019.
In 2020, the sales also decreased by 24.6 per cent to USD 53.3 billion as compared to USD 70.6 billion in 2019, primarily due to the impact of the COVID-19 pandemic on lower steel shipments.
Stating that 2020 was a milestone year for the company, Mittal said “achieving our USD 7 billion net debt target marked the end of a long-term deleveraging program, and the start of a new phase which will allow the company to focus on delivering sustainable shareholder returns as we continue to transform for the future.”
He further noted that “this process will be supported by changes we made to our portfolio, increasing the quality of its earnings potential, and by the investments we are making in high-growth projects and markets, such as those in India, Mexico, Brazil and Liberia.
“This effort is complemented by an improvement in market conditions which supported a significantly improved performance in the fourth quarter.”
ArcelorMittal said that its income from associates, joint ventures including AMNS India and other investments for 2020 was at USD 234 million, as compared to USD 347 million in 2019.
ArcelorMittal owns and operates Gujarat-based AMNS India, in joint venture with Japan’s Nippon Steel. While ArcelorMittal has 60 per cent stake in ArcelorMittal Nippon Steel India (AMNS India), the rest is with Nippon Steel.
On the performance of the JV company, it said AMNS India’s operations were impacted by the COVID-19 pandemic during the second quarter of 2020 with lockdown measures (in particular impacting April 2020).
Demand improved with easing of lockdown norms and the assets are currently running at higher utilization levels. In the fourth quarter, crude steel production of AMNS India was 1.9 MT and in 2020 at 6.6 MT. The JV company reported an EBITDA of USD 0.3 billion during the quarter, while in 2020, the same was at USD 0.7 billion.
“AMNS India has plans to debottleneck operations (steel shop and rolling parts) and achieve capacity of 8.6 MT per annum and medium term plans to expand and grow to 14 MT per annum. Its Thakurani mines are expected to operate at full 5.5 MTPA (million tonne per annum) capacity by the end of first quarter of 2021, and the second Odisha pellet plant is expected to be completed by the end of 1Q 2021, adding 6 MTPA for a total 20 MTPA of pellet capacity,” the parent company said.
On the outlook for the sector, ArcelorMittal said it expects global apparent steel consumption (ASC) in 2021 to grow between 4.5 per cent to 5.5 per cent against a contraction of 1 per cent in 2020. Given this positive outlook and subject to pandemic-related macroeconomic uncertainties, the company expects ASC to grow in 2021 versus 2020 in all its core markets, including India.