SSAB Report Historic Results for Apr-Jun 2021 Quarter
Swedish steel maker SSAB has reported the highest quarterly operating profit ever in Q2 of 2021, driven by strong demand, high steel prices and stable production. Its second quarter revenue was SEK 23,673 million (SEK 15,155 million in Q2 of 2020), EBITDA was SEK 4,899 million (705) ·& operating profit was SEK 4,083 million (-251).
SSAB Special Steels’ shipments remained high and rose to 388 (266) k tonnes. Operating profit increased to SEK 1,109 (485) million and the operating margin to 19% (12%). Growth in high-strength steel is a key element in our strategy for improved profitability. Our special steels are also important for the sustainability strategies of our customers to reduce their climate footprint, since our steels contribute to lighter weight and a longer useful life in many applications.
SSAB Europe’s operating profit rose to SEK 1,512 (-566) million and the operating margin increased to 15% (-9%), driven by a strong market, stable production and an improved product mix. SSAB America’s operating profit increased to SEK 1,151 (-10) million, driven by rising market prices for plate. The operating margin rose to 24% (0%).
SSAB has long been at the forefront of the green transition in the steel industry. It said “During Q2, we took further steps towards being first in the world to get fossil-free steel on the market. For the first time ever, iron ore has been directly reduced at a pilot scale using hydrogen made from fossil-free electricity. This ground breaking step took place at HYBRIT’s plant in Luleå. So far, over 100 tonnes of sponge iron of good quality have been produced. We have also initiated a strategic collaboration with Volvo Cars, which will be the first carmaker to secure SSAB steel made from hydrogen-reduced iron ore. The great interest shown by customer’s means that we are exploring the prerequisites to convert to fossil-free production in Luleå earlier than the original plan. We see positive effects from our leading position in sustainability and in June, we issued a five-year sustainability-linked (SLBP) bond of SEK 2bn. This gives us better conditions to finance activities and to reach our sustainability goals.”