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Erdemir's Q2 profit hits TL 4.39 billion

Erdemir announced a net profit of TL 4.39 billion in the second quarter of 2024.

Erdemir's Q2 profit hits TL 4.39 billion

The company, which had a profit of TL 5.60 billion in the previous quarter, achieved a total profit of TL 9.98 billion in the first six months of the year. In the second quarter, the company's EBITDA reached TL 6.4 billion and its total turnover reached TL 50.5 billion.

Looking at it in dollar terms, Erdemir achieved a net profit of USD 316 million in the second quarter of 2024, while its EBITDA reached USD 441 million. During the same period, the company realized a total sale of 3.9 million tons and generated revenues of USD 3.17 billion.

Significant improvements were also seen in production and sales performance. Liquid steel production increased from 3,218 tons in the first month of 2023 to 4,542 tons in the same period of 2024. The company achieved sales of 3,935 tons in the second quarter, with long product sales of 441 tons, cold product sales of 837 tons, and hot product sales of 2,657 tons. The share of exports in total sales rose to 18.8 percent, reaching 738 thousand tons.

Domestic sales of flat products increased by 1% compared to the previous year's sales, reaching 2.8 million tons. Total long product sales reached 441 thousand tons, of which 429 thousand tons were sold domestically. The Erdemir Group exported a total of 738 thousand tons of finished products, representing 19% of total sales.

After producing 7.2 million tons of crude steel in 2023, the Erdemir Group increased crude steel production by 13% in its Ereğli facility to 1,761 thousand tons in 2024. Crude steel production in the İskenderun facility increased by 68%, reaching 2,680 thousand tons. The group's total crude steel production in the first 6 months of 2024 increased by 41% compared to the same period of the previous year, reaching 4,441 thousand tons.

The company's capacity utilization rate reached 93%, its EBITDA margin reached 13.9%, and its net profit margin reached 10%. EBITDA per ton reached USD 101. This figure reached USD 124 in the first quarter of 2024 and USD 117 in the fourth quarter of 2023.

Erdemir's financial debt increased from USD 2.285 billion at the end of 2023 to USD 2.762 billion at the end of June 2024. Approximately USD 2.8 billion of the debt consists of USD 1.856 billion in short-term debt and USD 906 million in long-term debt. The net cash/EBITDA ratio decrease from 2.3x at the end of the first quarter of 2024 to 2.2x.

The company's capital expenditures in 2023 totaled USD 977 million, while this figure was USD 421 million in the first half of 2024.

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