Leading Canadian producer of hot and cold rolled steel sheet and plate products Algoma Steel expects total steel shipments to be approximately 455,000 tons in fiscal third quarter 2023 and Adjusted EBITDA is expected to be in a range of CAD (35-45) million. Algoma Steel’s Chief Executive Officer Mr Michael Garcia said “The sequential decrease in steel shipments and Adjusted EBITDA as compared to the fiscal second quarter 2023 is largely due to lower than expected plate shipments, continued softening in steel pricing, and normal seasonal maintenance activities ahead of winter.” Mr Garcia said “Despite a return to more typical levels of unfinished plate production, total plate shipments were adversely impacted by temporary downstream finishing constraints as we ramped up plate production. These impacts to Adjusted EBITDA adversely offset the expected benefit of higher sequential production volumes from the Direct Strip Production Complex operations as compared to the fiscal second quarter 2023.” Mr Garcia concluded “We expect to produce Adjusted EBITDA of CAD 395 million to CAD 405 million for the first nine months of our fiscal 2023. I am pleased that the plate mill has resumed normal production levels. We expect to return to more normalized shipments in calendar 2023, and to apply the lessons learned during phase one of the Plate Mill Modernization to our future capital projects. This will reflect the more robust earning power of Algoma. We remain laser focused on completion of our transformative electric arc furnace project, which remains on budget and on track to be producing steel in calendar 2024, as we transition to being one of the greenest producers of steel in North America.”
Leading Canadian producer of hot and cold rolled steel sheet and plate products Algoma Steel expects total steel shipments to be approximately 455,000 tons in fiscal third quarter 2023 and Adjusted EBITDA is expected to be in a range of CAD (35-45) million. Algoma Steel’s Chief Executive Officer Mr Michael Garcia said “The sequential decrease in steel shipments and Adjusted EBITDA as compared to the fiscal second quarter 2023 is largely due to lower than expected plate shipments, continued softening in steel pricing, and normal seasonal maintenance activities ahead of winter.” Mr Garcia said “Despite a return to more typical levels of unfinished plate production, total plate shipments were adversely impacted by temporary downstream finishing constraints as we ramped up plate production. These impacts to Adjusted EBITDA adversely offset the expected benefit of higher sequential production volumes from the Direct Strip Production Complex operations as compared to the fiscal second quarter 2023.” Mr Garcia concluded “We expect to produce Adjusted EBITDA of CAD 395 million to CAD 405 million for the first nine months of our fiscal 2023. I am pleased that the plate mill has resumed normal production levels. We expect to return to more normalized shipments in calendar 2023, and to apply the lessons learned during phase one of the Plate Mill Modernization to our future capital projects. This will reflect the more robust earning power of Algoma. We remain laser focused on completion of our transformative electric arc furnace project, which remains on budget and on track to be producing steel in calendar 2024, as we transition to being one of the greenest producers of steel in North America.”
