Prices
March 31, 2023
Algoma Expects Better Quarterly Results on Higher Prices, Shipments
Written by Laura Miller
Canadian flat rolled producer Algoma Steel Inc. said its performance in the quarter ended March 31 would be much improved over the prior quarter thanks to attractive market conditions and steel prices that were at a nine-month high.
In earnings guidance for its fiscal fourth quarter, Algoma said it anticipates quarterly steel shipments to be in the range of 555,000 to 565,000 tons. This will be an increase of roughly 100,000 tons from the 458,341 tons shipped in fiscal Q3.
“We anticipate that our shipments for the fourth fiscal quarter will align with our earlier projections now that our plate mill has returned to its historical production levels,” CEO Michael Garcia said.
Fiscal Q4 adjusted EBITDA is expected to be CAD $25–30 million, a notable improvement over the -$35.9 million adjusted EBITDA loss seen in the previous quarter.
The earnings improvement comes thanks “to lower costs resulting from stable operations and increased productivity,” Garcia said.
Sault Ste. Marie, Ontario-based Algoma’s electric-arc furnace (EAF) project continues to progress on time and on budget with an expected start-up still slated for mid-2024, the company noted
By Laura Miller, laura@steelmarketupdate.com
