Essar Steel Algoma reported positive earnings before interest, taxes, depreciation and amortization (EBITDA) of $54.6 million and a net loss of $7.2 million for the three-month period ending June 30, on shipments of 644,844 tons.
The results for the quarter reflect the impact of lower selling prices and higher costs compared to the three-month period ending June 30, 2011.
Compared to the same period of the prior year, shipments increased 0.6 per cent, and cost per ton of steel products sold increased 4.8 per cent.
Steel revenue was $511.8 million for the period.
The company further reported that it is currently in discussions with the lenders under the company’s Extended Revolving Facility to extend the facility beyond its current maturity date.
The company is also in discussions with various other financial institutions and third-party financing sources to obtain financing to replace the Extended Revolving Credit Facility.
“We continue to see the benefit of our cost reduction initiatives,” CEO Jim Hrusovsky said in a news release. “Despite difficult market conditions and the high cost of raw materials we delivered a positive EBITDA for the first quarter.”
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