Chilean iron ore and steel producer Grupo CAP achieved a net profit of USD 216 million in January-June 2022 as against USD 531 million in the same period of 2021. According to the company, the reduced profit reflects lower margins for all its business areas, due not only to lower prices in line with declining international prices of commodities, but also production costs that were impacted by inflationary pressures. Net sales declined by 26% YoY to USD 1.55 billion, while the gross profit declined by 57% to USD 525 million.By business segment, the gross profit of Compañía Minera del Pacífico, at the end of the first half of 2022, decreased 59% to USD 450 million, while EBITDA decreased 54%, reaching USD 536 million. Meanwhile, the net income of the mining segment reached USD 296 million in the first half of the year, a figure lower than the USD 695.0 million obtained as of June 2021. During the first half of 2022, CMP continued to operate all of its production operations without major interruptions, reaching production and shipment levels of 7.4 and 6.9 million tonnes, respectively, in line with the 7.6 million tonnes of production for the same period in 2021, and slightly lower than the 7 .2 million tonnes shipped during the first half of last yearAt Siderúrgica Huachipato, during the first semester it achieved a gross margin of USD 16 million versus a figure of US 23 million in the first half of the previous year, an EBITDA of USD 11 million versus a figure of USD 19 million in the same period of the previous year and had a net loss of USD 9 million versus a loss of USD 1.5 million in the first half of 2021.In CSH, during the first half of 2022, total revenues reached USD 363 million, 10% more than in the same period of 2021. These higher revenues are explained by a 41% increase in the average price of steel sales at USD 1,104 per tonne in the first half of 2022 versus USD 781 per tonne in the same period of 2021, despite the 19% reduction in volumes shipped as consequence of the stoppage of Blast Furnace No 2 due to unwanted cooling during start-up after its maintenance in the first quarter of the current yearIn the Steel Processing segment, a business made up of Cintac in Chile, Tupemesa, Calaminon, Sehover and Signovial in Peru, TASA in Argentina, and also Promet in Chile and Peru, accumulated revenues and EBITDA as of June this year reached USD 312 million and USD 25.4 million, respectively. These figures represent reductions of 2.2% in sales and 65% in EBITDA compared to the first half of 2021, which is mainly explained by tighter margins as a result of production costs that in absolute terms increased 16%, which was not compensated by the 19% increase in the average price of steel products sold by this business segment
Chilean iron ore and steel producer Grupo CAP achieved a net profit of USD 216 million in January-June 2022 as against USD 531 million in the same period of 2021. According to the company, the reduced profit reflects lower margins for all its business areas, due not only to lower prices in line with declining international prices of commodities, but also production costs that were impacted by inflationary pressures. Net sales declined by 26% YoY to USD 1.55 billion, while the gross profit declined by 57% to USD 525 million.By business segment, the gross profit of Compañía Minera del Pacífico, at the end of the first half of 2022, decreased 59% to USD 450 million, while EBITDA decreased 54%, reaching USD 536 million. Meanwhile, the net income of the mining segment reached USD 296 million in the first half of the year, a figure lower than the USD 695.0 million obtained as of June 2021. During the first half of 2022, CMP continued to operate all of its production operations without major interruptions, reaching production and shipment levels of 7.4 and 6.9 million tonnes, respectively, in line with the 7.6 million tonnes of production for the same period in 2021, and slightly lower than the 7 .2 million tonnes shipped during the first half of last yearAt Siderúrgica Huachipato, during the first semester it achieved a gross margin of USD 16 million versus a figure of US 23 million in the first half of the previous year, an EBITDA of USD 11 million versus a figure of USD 19 million in the same period of the previous year and had a net loss of USD 9 million versus a loss of USD 1.5 million in the first half of 2021.In CSH, during the first half of 2022, total revenues reached USD 363 million, 10% more than in the same period of 2021. These higher revenues are explained by a 41% increase in the average price of steel sales at USD 1,104 per tonne in the first half of 2022 versus USD 781 per tonne in the same period of 2021, despite the 19% reduction in volumes shipped as consequence of the stoppage of Blast Furnace No 2 due to unwanted cooling during start-up after its maintenance in the first quarter of the current yearIn the Steel Processing segment, a business made up of Cintac in Chile, Tupemesa, Calaminon, Sehover and Signovial in Peru, TASA in Argentina, and also Promet in Chile and Peru, accumulated revenues and EBITDA as of June this year reached USD 312 million and USD 25.4 million, respectively. These figures represent reductions of 2.2% in sales and 65% in EBITDA compared to the first half of 2021, which is mainly explained by tighter margins as a result of production costs that in absolute terms increased 16%, which was not compensated by the 19% increase in the average price of steel products sold by this business segment
