The top integrated steel and mining corporation in the world, ArcelorMittal, released its 2Q 2024 results, revealing an EBITDA of $1.9 billion, a tiny decrease from $2.0 billion in the 1Q 2024. In 2Q 2024, the EBITDA per tonne was $134, indicating further structural improvements.
From 13.5 million tonnes in the first quarter of 2024 to 13.9 million tonnes in the second, there was a 3.2% rise in steel shipments. The impact of decreasing steel prices was somewhat mitigated by these increased shipments and decreased costs.
Net income decreased to $0.5 billion in the second quarter of 2024 from $0.9 billion.
in the first, mostly as a result of the non-cash mark-to-market effect on Vallourec shares. As of June 30, 2024, the corporation had gross debt of $11.1 billion, cash and cash equivalents of $5.9 billion, and net debt of $5.2 billion at the conclusion of the quarter. Ongoing capital returns and expansion investments are supported by this solid financial position.
ArcelorMittal produced $2.6 billion in investable cash flow in the previous year, of which $1.8 billion was distributed to shareholders and $1.5 billion was spent in strategic growth initiatives. ArcelorMittal anticipates that India will have another successful year; apparent growth in steel consumption is expected to increase by 7.5% to 9.5%, as opposed to the earlier estimate of 6.5% to 8.5%.
AM/NS India produced 1,867 kt of steel in 2Q 2024, up from 1,792 kt in 2Q 2023 but down from 1,984 kt in 1Q 2024. A decrease in average steel selling prices and scheduled maintenance caused a 12.9% drop in sales to $1.6 billion in the second quarter of 2024 from $1.8 billion in the first quarter. The 2Q 2024 EBITDA decreased to $237 million from $312 million in the 1Q 2024 due to lower shipments and a negative price-cost impact.
The infrastructure for electricity evacuation in the 1GW India renewables project in Andhra Pradesh is almost finished, and commissioning has started. With the $0.7 billion capital expenditure project, AMNS India will be able to cover more than 20% of its plant’s energy needs, including $0.1 billion in EBITDA and cost-competitive, reliable, 24/7 renewable power.
ArcelorMittal, the world’s leading integrated steel and mining company, announced its second quarter (2Q) and half-year results for 2024 on August 1, 2024. The company reported an EBITDA of $1.9 billion for 2Q 2024, slightly down from $2.0 billion in the first quarter.
Steel shipments increased by 3.2% to 13.9 million tons, offsetting the impact of lower steel prices. Net income for the quarter was $0.5 billion, primarily affected by non-cash items. The company’s net debt stood at $5.2 billion as of June 30, 2024, reflecting investments in working capital and capital expenditures.
Despite challenges such as weaker construction activity in Europe and real estate issues in China, ArcelorMittal’s diversification strategy has been beneficial. Projects in Brazil, India, the USA, France, and Liberia are expected to add $1.8 billion to EBITDA by 2026. Recent acquisitions in Spain and Italy, along with a joint venture.
Vallourec, are projected to contribute an additional $0.2 billion to core earnings by 2025. The company remains optimistic, maintaining a commitment to return 50% of post-dividend free cash flow to shareholders and expects positive free cash flow moving forward As of February 22, 2025, ArcelorMittal’s stock (MT) is trading at $27.80, reflecting a slight decrease of 0.71% from the previous close.
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