ArcelorMittal suffers Q4 loss

Luxembourg-based steelmaker and mining firm ArcelorMittal has reported an operating loss of nearly $2 billion in the fourth quarter of last year and a net loss attributable to shareholders of nearly $3 billion.

Despite the negative results in the three-month period, ArcelorMittal was able to stay in the black in 2023 with net income attributable to shareholders of nearly $920 million for the entire year.

“Despite the operating environment becoming increasingly challenging as the year progressed, our profitability per ton is healthy and well above long-term averages," ArcelorMittal CEO Aditya Mittal says.

Mittal says the income achieved for the overall calendar year reflects the benefits of the structural improvements made to its cost base, asset portfolio and balance sheet in recent years.

The company, in notes accompanying its earnings report, points to its growing presence in the recycled-content electric arc furnace (EAF) steel sector as a capital allocation priority.

“Existing capabilities in low-carbon metallics and EAF steelmaking provide a unique competitive advantage as we offer an increasingly broad range of low-carbon intensity steel products to our customers,” the company says.

“Our XCarb recycled and renewably12 produced steel continues to resonate with our customers, most recently exemplified by contracts to supply Vestas and Schneider Electric."

On the EAF front, ArcelorMittal projects are progressing through front end engineering design. "We have signed contracts for a new 1.1 million tons EAF at Gijon, which will decarbonize the long business in Spain, allowing for production of rails and quality wire rods; and a signed letter of intent with [power producer] EDF for a long-term agreement to supply low carbon emissions power for our key French operations," it adds.

The company expects its joint venture EAF mill in Calvert, Alabama, to soon provide revenue with a comparatively low carbon footprint.

Other remarks by the company focused on a mine fire and incident that killed nearly four dozen people at the Kostenko coal mine in Kazakhstan in late October of last year.

“In October last year we committed to commissioning an independent third-party global audit of all our safety related practices and actions,” Mittal says. “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.

“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.”