Acerinox expects its EBITDA and production in Q3 2020 to be at par with the previous quarter as demand for steel improves after the COVID-19 related lockdowns.
The company, which reported its H1/Q2 2020 earnings on July 29, said that the pandemic had far-reaching effects and its impact had limited steelmakers from accurately projecting any long-term guidance. As a result, the company was unable to give any estimates beyond the next three months of the fiscal.
In the first half, the Spanish steelmaker’s melt shop production decreased by 13pc to about 1.04mn mt from 1.19mn mt during the same period last year. In Q2, production fell by 22pc to 442,000mt compared with 599,000mt in Q2 2019.
The company’s net sales fell by 5pc in H1 2020 to €2.33bn ($2.75bn) from €2.44bn in the first six months of 2019. The company’s sales in the second quarter also declined to €1.17bn from €1.15bn during the same period last year.
However, the company’s net profit declined by almost 97pc during the first six months due to a €43mn impairment payment made for its assets of Bahru Stainless. As a result, the company posted a net profit of €2mn in H1 2020, compared with a €69mn profit posted during the same period last year. The company also accounted the expenses related to its acquisition of VDM Steel to its earnings during the period.
Acerinox posted a net loss of €26mn in Q2 2020 compared with a net profit of €28mn during the same quarter in 2019 following its payment for Bahru Stainless during the quarter.