Sault Ste Marie Ontario based leading Canadian producer of hot and cold rolled steel sheet and plates Algoma Steel Group Inc announced net income of CAD 123 million for Oct-Dec 2021 uarter, as compared to a loss of CAD 73.5 million in the prior-year quarter. Algoma Steel Chief Executive Officer Mr Michael McQuade said “Continued record pricing for our products, the construct of our contracted order book, and solid execution by our employees combined to deliver tanding revenue growth, record quarterly Adjusted EBITDA, and robust free cash generation during our fiscal third quarter 2022. Our strong results were achieved against a backdrop of continued market volatility and in spite of several previously announced shipping constraints, including extended customer holiday shutdowns, logistical supply chain constraints, and COVID-related challenges. Calendar 2021 was a period of profound change for the company, one that saw us return to public markets and generate significant cash flow. This allows us to execute on our organic growth strategy while at the same time pursuing a capital allocation policy that includes a quarterly dividend and an NCIB program for potential share repurchases. Armed with our robust balance sheet, strong projected cash flows, and funding to support the transformation to electric arc steelmaking, we are driving the process that is expected to substantially increase our production capacity while dramatically reducing our carbon emissions, resulting in additional long-term value for our stakeholders.”Third quarter revenue totaled CAD 1.06 billion, up 147.6% from CAD430.0 million in the prior-year quarter. As compared with the prior-year quarter, steel revenue was CAD 1.01 billion, up 163.0% from CAD 383.8 million, and revenue per ton of steel sold was CAD 1,927, up 145.5% from CAD785.Income from operations was CAD 446.1 million, compared to a loss from operations of CAD 17.7 million in the prior-year quarter. The year-over-year increase was primarily due to an increase in the selling price of steel, partially offset by an increase in the purchase price of inputs, including iron ore, scrap, natural gas and alloys.Adjusted EBITDA in the third quarter was CAD 457.3 million, compared with CAD 11.7 million for the prior-year quarter. This resulted in an Adjusted EBITDA margin of 42.9%. Net income in the third quarter was CAD 123.0 million, compared to a net loss of CAD 73.5 in the prior-year quarter. The improvement was driven primarily by the factors described above under income from operations, offset by listing expenses and transaction costs associated with the merger with Legato Merger Corp.Net sales realizations averaged CAD 1,827 per ton, up 160.6% from CAD 701 per ton in the prior-year quarter. Cost per ton of steel products sold was CAD 946, up 46.2% from CAD 647 in the prior-year quarter.Shipments for the third quarter increased by 0.9% to 552,554 tons, compared to 547,733 tons in the prior-year quarter
Sault Ste Marie Ontario based leading Canadian producer of hot and cold rolled steel sheet and plates Algoma Steel Group Inc announced net income of CAD 123 million for Oct-Dec 2021 uarter, as compared to a loss of CAD 73.5 million in the prior-year quarter. Algoma Steel Chief Executive Officer Mr Michael McQuade said “Continued record pricing for our products, the construct of our contracted order book, and solid execution by our employees combined to deliver tanding revenue growth, record quarterly Adjusted EBITDA, and robust free cash generation during our fiscal third quarter 2022. Our strong results were achieved against a backdrop of continued market volatility and in spite of several previously announced shipping constraints, including extended customer holiday shutdowns, logistical supply chain constraints, and COVID-related challenges. Calendar 2021 was a period of profound change for the company, one that saw us return to public markets and generate significant cash flow. This allows us to execute on our organic growth strategy while at the same time pursuing a capital allocation policy that includes a quarterly dividend and an NCIB program for potential share repurchases. Armed with our robust balance sheet, strong projected cash flows, and funding to support the transformation to electric arc steelmaking, we are driving the process that is expected to substantially increase our production capacity while dramatically reducing our carbon emissions, resulting in additional long-term value for our stakeholders.”Third quarter revenue totaled CAD 1.06 billion, up 147.6% from CAD430.0 million in the prior-year quarter. As compared with the prior-year quarter, steel revenue was CAD 1.01 billion, up 163.0% from CAD 383.8 million, and revenue per ton of steel sold was CAD 1,927, up 145.5% from CAD785.Income from operations was CAD 446.1 million, compared to a loss from operations of CAD 17.7 million in the prior-year quarter. The year-over-year increase was primarily due to an increase in the selling price of steel, partially offset by an increase in the purchase price of inputs, including iron ore, scrap, natural gas and alloys.Adjusted EBITDA in the third quarter was CAD 457.3 million, compared with CAD 11.7 million for the prior-year quarter. This resulted in an Adjusted EBITDA margin of 42.9%. Net income in the third quarter was CAD 123.0 million, compared to a net loss of CAD 73.5 in the prior-year quarter. The improvement was driven primarily by the factors described above under income from operations, offset by listing expenses and transaction costs associated with the merger with Legato Merger Corp.Net sales realizations averaged CAD 1,827 per ton, up 160.6% from CAD 701 per ton in the prior-year quarter. Cost per ton of steel products sold was CAD 946, up 46.2% from CAD 647 in the prior-year quarter.Shipments for the third quarter increased by 0.9% to 552,554 tons, compared to 547,733 tons in the prior-year quarter
