Luxembourg steelmaker ArcelorMittal has announced its quarter one results for 2018, reporting EBITDA (earnings before interest, taxes, depreciation and amortisation) of USD 2.5 billion, up from USD 2.1 billion at the end of quarter four 2017.
In a communiqué released on 11 May 2018, the steelmaker said the increased EBITDA was primarily due to, “higher average steel selling prices, which increased by 8.2%, and higher seaborne iron ore reference process, up 13.6%.” As a result, quarter 1 EBITDA is up 12.6% YoY (year-on-year).
Operating income increased to $1.6 billion on Q1 2018, compared to $1.3 billion in Q4 2017, producing a stable YoY.
“The improvement in global steel market dynamics has continued into 2018, supporting an encouraging financial performance in the first quarter. EBITDA increased 13% year-on-year to $2.5 billion, while net income improved by 19% to $1.2 billion. The outlook for 2018 has strengthened as the year has progressed, with the combination of growing demand and supply-side reform driving higher capacity utilisation rates and healthy steel spreads globally. Against this improving backdrop, we continue to focus on structural improvement - through the delivery of our Action 2020 strategic plan - and investing with focus and discipline in opportunities that will drive higher future returns. Our acquisition of Ilva has now received competition clearance from the European Commission and we expect to complete this acquisition by the end of the second quarter 2018,” commented Lakshmi Mittal, ArcelorMittal chairman and CEO.
Further details of the steelmaker’s 2018 Q1 results can be read here.