It’s a quarter that Aditya Mittal, ArcelorMittal Chief Executive Officer, called “our strongest in a decade.” In addition to operating income growth, EBITDA also increased by 88% to $3.2bn, compared to $1.7bn in Q4 2020.
Demand recovery improved ArcelorMittal’s operating performance in the first quarter of the year, with a +6.5% sequential increase in steel shipments (total steel shipments for the quarter were 16.5Mt).
Despite a working capital investment of $1.6bn, free cash flow was recorded as $0.3bn, while gross debt declined from $12.3bn at the end of 2020 to $11.4bn.
"Operationally, we have had a very positive start to the year. We are seeing a continuation of the positive market dynamics of the fourth quarter and have been steadily bringing back production in-line with the demand recovery, which is supported by low inventory levels through the value chain,” the CEO said in the statement.
In Q1 2021, the company also effectively completed a $650m share buyback after selling its equity stake in Cleveland Cliffs, an Ohio-based company specialising in mining and services related to iron ore and steelmaking.
“Our priorities for the remainder of the year and beyond are clear: to maintain a competitive cost advantage; to strategically grow through high-return projects in high-growth markets, whilst leveraging existing infrastructure to develop our iron-ore resource; to consistently return cash to shareholders via a defined capital return policy; and to lead on sustainable development.”
The CEO added that the response to XCarb, the company’s initiative to join its reduced to zero-carbon activities and products, has been met with positive customer response. In addition to broadening the scope for decarbonisation and sustainability, Mittal announced a vision to double women in management by 2030 to 25%.
The company added that in Q2 2021 ArcelorMittal Italia is to be deconsolidated, with the new company Acciaierie d’Italia set on a course to operate independently.
Daily oxygen, medical support in India
ArcelorMittal stated its “overarching priority” was the continued health and safety of its workforce. On Thursday, it was announced India had reached a record of new covid-19 cases, at 412,262 as the second wave spreads deeper into rural areas. The daily death toll reached 3,980.
“We are mindful that covid continues to be a health challenge across the world especially in developing economies. Nowhere is this more obvious at present than in India, where we have our AM/NS India JV with Nippon Steel,” Mittal stated.
“Our colleagues in India are sending support wherever we can, including providing daily amounts of oxygen from our sites to local hospitals and setting up temporary medical facilities.”
According to the statement, AM/NS India is supplying 210 Mt of liquid oxygen daily to the state of Gujarat, on India’s western coast, where the plant is located. A new employee vaccination campaign for all AM/NS India employees is now underway, while a drive had already been launched for medical and paramedical staff nearby, the company explained. It has also set up a hospital with a 1,000-bed capacity nearby.
Mittal added, “Our thoughts are with the people of India as they strive to bring this situation under control.”