Sault Ste Marie Ontario based leading Canadian steel maker Algoma Steel announced consolidated revenue of CAD 3.806 billion for financial year ended 31 March 2022, up 112% YoY with net income of CAD 858 million as compared to a net loss of CAD 76 million the prior financial year. Algoma Steel has reported adjusted EBITDA of CAD 1.503 billion & adjusted EBITDA margin of 39.5%. Algoma Steel’s CEO Mr Michael Garcia said “Our strong results for the fiscal fourth quarter capped off an incredible year at Algoma, one that produced record revenues, profitability and cash flows. Relentless execution by the entire team delivered these strong results across what was truly a tumultuous year for both steel and raw material markets. It is through this hard work and dedication that we have positioned ourselves to drive additional value creation for our shareholders on two fronts simultaneously. Our transformational electric arc furnace project is advancing as planned towards a 2024 startup, and today we are announcing the next phase of our capital allocation program with a USD 400 million substantial issuer bid which would represent roughly a third of today’s market capitalization.”Full Year Fiscal 2022 ResultsShipments - 2,297 million ton, up9% YoYRevenue – CAD 3.806 billion, up 112% YoYAdjusted EBITDA – CAD 1.503.2 billion, compared with CAD 199 millionNet income – CAD 858 million, compared to a net loss of CAD 76.1 millionRevenue per ton of steel sold – CAD 1,657, up 94% YoYCost per ton of steel products sold - CAD 857, up 33% YoYPer tonne profit – CAD 800 (USD 618)In November 2021, the Board of Directors authorized the Company to construct two new state-of-the-art electric arc furnaces to replace its existing blast furnace and basic oxygen steelmaking operations. The CAD 700 million projects is expected to take two years to complete and is advancing as expected. Following the transformation to EAF steelmaking, Algoma’s facility is anticipated to have an annual raw steel production capacity of approximately 3.7 million tons, which would match its downstream finishing capacity, and would be expected to reduce the Company’s annual carbon emissions by approximately 70%.Algoma Steel intends to commence USD 400 million substantial issuer bid, as part of its overall capital allocation strategy, under which the Company plans to offer to purchase for cancellation from shareholders up to USD 400 million of the Company’s outstanding common shares by way of a modified Dutch auction which will permit shareholders to choose, within the pricing range determined by the Company, the number of shares and the price at which they wish to tender such shares, with the purchase price for all tendering shareholders being the lowest purchase price per share that will enable the Company to purchase the maximum number of shares properly tendered to the offer, up to USD 400 million.Outlook – “Based on our current information regarding our operations and end markets, we currently expect Adjusted EBITDA CAD 335-355 million for the first quarter of fiscal 2023
Sault Ste Marie Ontario based leading Canadian steel maker Algoma Steel announced consolidated revenue of CAD 3.806 billion for financial year ended 31 March 2022, up 112% YoY with net income of CAD 858 million as compared to a net loss of CAD 76 million the prior financial year. Algoma Steel has reported adjusted EBITDA of CAD 1.503 billion & adjusted EBITDA margin of 39.5%. Algoma Steel’s CEO Mr Michael Garcia said “Our strong results for the fiscal fourth quarter capped off an incredible year at Algoma, one that produced record revenues, profitability and cash flows. Relentless execution by the entire team delivered these strong results across what was truly a tumultuous year for both steel and raw material markets. It is through this hard work and dedication that we have positioned ourselves to drive additional value creation for our shareholders on two fronts simultaneously. Our transformational electric arc furnace project is advancing as planned towards a 2024 startup, and today we are announcing the next phase of our capital allocation program with a USD 400 million substantial issuer bid which would represent roughly a third of today’s market capitalization.”Full Year Fiscal 2022 ResultsShipments - 2,297 million ton, up9% YoYRevenue – CAD 3.806 billion, up 112% YoYAdjusted EBITDA – CAD 1.503.2 billion, compared with CAD 199 millionNet income – CAD 858 million, compared to a net loss of CAD 76.1 millionRevenue per ton of steel sold – CAD 1,657, up 94% YoYCost per ton of steel products sold - CAD 857, up 33% YoYPer tonne profit – CAD 800 (USD 618)In November 2021, the Board of Directors authorized the Company to construct two new state-of-the-art electric arc furnaces to replace its existing blast furnace and basic oxygen steelmaking operations. The CAD 700 million projects is expected to take two years to complete and is advancing as expected. Following the transformation to EAF steelmaking, Algoma’s facility is anticipated to have an annual raw steel production capacity of approximately 3.7 million tons, which would match its downstream finishing capacity, and would be expected to reduce the Company’s annual carbon emissions by approximately 70%.Algoma Steel intends to commence USD 400 million substantial issuer bid, as part of its overall capital allocation strategy, under which the Company plans to offer to purchase for cancellation from shareholders up to USD 400 million of the Company’s outstanding common shares by way of a modified Dutch auction which will permit shareholders to choose, within the pricing range determined by the Company, the number of shares and the price at which they wish to tender such shares, with the purchase price for all tendering shareholders being the lowest purchase price per share that will enable the Company to purchase the maximum number of shares properly tendered to the offer, up to USD 400 million.Outlook – “Based on our current information regarding our operations and end markets, we currently expect Adjusted EBITDA CAD 335-355 million for the first quarter of fiscal 2023
