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Announced a profit when a loss was expected! Here is Erdemir's net profit

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (EREGL) announced its balance sheet for the third quarter of 2023.

Announced a profit when a loss was expected! Here is Erdemir's net profit

The company posted a net profit of TL 41,368,000 in this quarter, contrary to the expected average loss. This result was realized above market expectations.

Erdemir's 9-month total EBITDA decreased by 60 percent compared to the same period of the previous year. These developments reflect the company's recent financial performance.

Erdemir posted a profit of TRY41.4 million in the third quarter of 2023. The average market expectation was for a net loss of TRY1,958 million.

The most important reason for the deviation in the net profit forecast was the one-off insurance claim income of TRY2.21 billion recorded due to the damage to the operations at Isdemir facilities as a result of the earthquake in February and the foreign exchange losses realized below the expectations.

Erdemir posted a net profit of TL 2.57 billion in the third quarter of last year, while it posted a profit of TL 14.8 billion in the nine months of 2022 and ended 2022 with a profit of TL 18 billion.

EBITDA was realized at TRY5.22 billion in the quarter, below expectations of TRY5.74 billion, while total turnover in the third quarter was TRY37.4 billion, below expectations of TRY43.1 billion.

In dollar terms, Erdemir posted a net profit of USD 3 million in the third quarter of 2023, while EBITDA amounted to USD 463 million.

The company posted a loss of 109 million dollars in the same period last year and 183 million dollars in the previous quarter. Thus, the company's net profit margin, which was 14.8 percent in the second quarter of 2022, declined to 3.8 percent loss in this quarter. EBITDA margin fell from 14 percent in the second quarter to 13.8 percent in the third quarter.

EBITDA per ton increased from $124 in Q3 last year to $141 in Q2 2023. EBITDA per ton fell again this quarter to $111.

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