ArcelorMittal reports strong results for 2023 despite challenges

AMSTERDAM: ArcelorMittal, the world’s leading integrated steel and mining company, today announced its financial and operational results for the year 2023, highlighting its resilience and performance amid a challenging market environment.

The Company posted an EBITDA of $7.6 billion and a net income of $0.9 billion for the year, reflecting structural improvements to profitability and cash flow generation. The net income was impacted by non-cash non-recurring items related to the disposal of the Kazakhstan operations and the impairment of Acciaierie d’Italia in Italy. Adjusting for these items, the adjusted net income was $4.9 billion.

The Company also strengthened its balance sheet, reducing its net debt to $2.9 billion at the end of 2023, and increasing its liquidity to $13.2 billion. The Company repurchased 45.4 million shares in 2023, bringing the total reduction in fully diluted shares outstanding to 33% since the end of September 2020. The book value per share increased to $66 over the last 12 months.

The Company’s health and safety focus remained an overarching priority, as it faced the tragic Kostenko mine accident in October 2023, which severely impacted its performance. The Company has commissioned dss+ to conduct a comprehensive independent Company-wide safety audit of its operations, to identify gaps and strengthen safety actions, processes and culture to help prevent serious accidents. The key recommendations will be published in September 2024.

The Company also shared its outlook for 2024, expecting a recovery in apparent steel demand in most regions, as the destocking phase reaches maturity. The Company anticipates a growth of 3.0% to 4.0% in world ex-China apparent steel consumption, driven by the US, Europe, India and Brazil. The Company remains positive on the medium/long-term steel demand outlook and, supported by its strong position, remains focused on executing its strategy.

Commenting, Aditya Mittal, ArcelorMittal Chief Executive Officer, said: “In October last year we committed to commissioning an independent 3rd party global audit of all our safety related practices and actions. This audit is now underway and I am determined its findings and recommendations, combined with the considerable efforts we are already implementing across the Group, will make us a safer and ultimately accident free company. Every employee in ArcelorMittal is aligned in this goal.

“Turning to our financial performance, our results for the full year reflect the benefits of the structural improvements we have made to our cost base, asset portfolio and balance sheet in recent years. Despite the operating environment becoming increasingly challenging as the year progressed, our profitability per tonne is healthy and well above long-term averages. This highlights the enhanced sustainability we have built into the business, enabling us to generate healthy cash flow to invest for future growth and return attractive levels of capital to our shareholders.

“Looking ahead, there are early signs of a more constructive industry backdrop. This, alongside the progress we are making with our portfolio of strategic growth projects – several of which will complete this year – means the Company will continue to take important steps forward in its drive to be a stronger, more profitable, and of course safer, Company.”