Aceros Arequipa’s sales revenue fell by 9.3pc to PEN2.8bn ($769mn) in 2020 compared to PEN3.1bn in the prior year, the Peruvian steelmaker indicated in its earnings report on Friday.
However, the company’s EBITDA increased by 4.4pc to PEN411mn in 2020 from PEN393.7mn in 2019. Net income during the same period declined by 7.5pc to PEN184mn against PEN199mn, while capital expenditures contracted by 70.2pc to PEN369mn from PEN525mn. In 2020, Aceros’ operating margins rose to 19.3pc, up 3.5 percentage points from 15.8pc the previous year.
In Q4 2020, Aceros’ sales revenue increased by 38.5pc to PEN1.1bn against PEN767.4mn in the same year-ago quarter on a recovery in steel demand and higher steel prices. EBITDA in Q4 2020 increased by 69.5pc to PEN184.6mn compared to the same quarter a year ago. The company’s operating margin for the quarter climbed to 22.9pc against 17.9pc in the same quarter last year.
In Q4, 92.5pc of sales were made domestically with the remaining 7.5pc in exports. In 2020, 12.5pc of revenues were derived from exports.
Aceros previously announced plans to build a new $207mn mill and add 1.2mn mt in annual capacity with a commissioning timeline within Q2 2021. With operations initiating in April or May, the company informed the stock exchange in Peru that it planned to launch a subsidiary in Colombia under the name of Aceros América S.A.S. The new company will perform sales activities to support present Colombian clients and expand the market. Long-term the company hopes to increase exports to 20pc of sales.