Ereğli Demir Çelik Fabrikaları (Erdemir) announced its balance sheet for the first quarter of 2024.
Accordingly, the deviation in net profit was realized above operational profitability expectations.
The market expectation was for Erdemir to announce a profit of TRY 5 billion. Thus, Erdemir's profit was realized slightly above market expectations.
Erdemir's first quarter net sales were realized as TL 49.7 billion, behind the forecast of TL 53.9 billion but in line with the market expectation of TL 49.0 billion. Total steel shipments increased by 28% y-o-y to 2.0 million tons (-7% qoq), with production up 50% y-o-y in the first quarter. In the same period last year, the company's revenue was 26.2 billion TRY.
Flat steel sales decreased
Long steel sales increased by 7% to 256 thousand tons and flat steel sales decreased by 7% q-o-q to 1.7 million tons. Export sales increased by 2% to 292 thousand tons, representing 14.8% of total sales.
Consolidated EBITDA per unit increased by USD 38/ton to USD 123/ton on a quarterly basis, with a 5% increase in product prices.
Expectations were at USD 86/ton. Cash costs were flat q-o-q at USD 690/ton, with lower than expected iron ore costs. Net debt position increased by TRY12.5 billion q-o-q to TRY54.4 billion on TRY5 billion of capital expenditures and TRY3.2 billion of increased working capital.
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