Essar Steel Algoma reported positive EBITDA of $30.2 million and a net loss of $50.8 million for the three-month period ending December 31, 2011 on shipments of 635,308 tons. EBITDA (earnings before interest, taxes, depreciation and amortization) is a meaningful indicator of the company’s profitability.
The results for the three-month period reflect the impact of higher selling prices for the company’s products and lower costs compared to the three-month period ending December 31, 2010. Compared to the similar period of the prior year, shipments were up 0.9 per cent, and cost per ton of steel products sold was reduced by 0.9 per cent. Steel revenue was $490.5 million for the period, primarily due to improved pricing.
“We have earned positive EBITDA in each of the last four quarters and continue to see an improvement in operating reliability,” CEO Jim Hrusovsky said in a news release. “I am pleased to recognize the safe and highly successful installation of an individualized oven pressure control system on our No. 9 coke battery. This $20-million investment in leading edge technology is estimated to reduce emissions from the battery by more than 70 per cent.”