Usiminas Registers Highest EBITDA in 12 years in 2020
Brazilian steel maker Usiminas announced an Adjusted EBITDA of BRL 3.2 billion (USD 596) for 2020, the best result since 2008. Net income in 2020 was
Brazilian steel maker Usiminas announced an Adjusted EBITDA of BRL 3.2 billion (USD 596) for 2020, the best result since 2008. Net income in 2020 was BRL 1.3 billion, against BRL 377 million registered in 2019, an increase of 243%. Net revenue in 2020 reached BRL 16.1 billion, an 8% increase over 2019, the highest annual net revenue in Usiminas' history, mainly due to the increase in net revenue of the Mining Unit. Usiminas President Mr Sergio Leite said “Usiminas has a long history of challenges and overcoming. In 2020, we faced a period of great social and economic impacts imposed by the Covid-19 pandemic and our teams showed, once again, their ability to overcome obstacles. We took the appropriate measures at the right time and managed to end the year with very satisfactory results. After the most acute phase of the crisis, when we had to take drastic measures such as the shutdown of two of our three blast furnaces at the Ipatinga Plant, we were able to resume Blast Furnace 1 operations last August and we are already preparing to restart the AF-2 next June.”
In 2020, crude steel production at the Ipatinga Plant was 2.760 million tonnes, 15.4% lower in relation to 2019. Finished production at the Ipatinga and Cubatao Plants totaled 3.695 million tonnes in the year a 9.1% decrease, resultant from the measures taken to adapt needed production to the fall in demand observed in beginning of the pandemic. In 2020, 1.245 million tonnes of purchased slab were processed
In 2020, Mining Production Volume totaled 8.7 million tonne, a record by the Unit, an 18.2% increase over that in 2019 due to continuous operation of the Samambaia Plant in the year, while the plant operated for eight months in 2019. In 2020, Mineragao Usiminas once again achieved an annual sales record with volume of 8.7 million tonne, 0.8% more that in 2019
In 2020, total sales were 3.7 million tonnes of steel, a 9.3% decline over 2019, reflecting the impact of the Covid-19 pandemic in the steel consuming segments, especially in the 2Q20. The most impacted segment of Usiminas customers by the pandemic was the automobile industry, with national automobile production falling 31.6% compared to 2019. On the other hand, industrial customers showed an increase in volume purchased, mainly in Civil Construction and White Goods, reflecting Usiminas' efforts to serve segments that have shown greater resilience throughout 2020. In the domestic market, sales were 3.3 million tonnes in 2020, a 10.3% decrease in relation to 2019. Export sales in the year were 421 thousand tonnes, 0.8% less than in 2019. Sales volume was 89% to the domestic market and 11% to exports.