Report for the second quarter 2021: Historical quarter – Solid internal performance in a strong market
July 21, 2021 7:30 CEST 6 min read
The second quarter · Revenue was SEK 23,673 (15,155) million · EBITDA was SEK 4,899 (705) million · Operating profit was SEK 4,083 (-251) million · Earnings per share were SEK 3.13 (-0.28)
Comments by the CEO – a historical quarter for SSAB
For Q2 2021, we report the highest quarterly operating profit ever, driven by strong demand, high steel prices and stable production. At the same time, we consolidated our position as the leading force in the green transition of the steel industry. The quarter saw us take groundbreaking steps towards full-scale fossil-free steelmaking and enter into new collaboration agreements, which will enable also our customers to reduce their climate footprint.
The result for Q2 2021 increased to SEK 4,083 (-251) million, a historic high for a single quarter. Net cash flow was strong and amounted to SEK 3,024 (48) million.
SSAB Special Steels’ shipments remained high and rose to 388 (266) ktonnes. Operating profit increased to SEK 1,109 (485) million and the operating margin to 19% (12%). Growth in high-strength steel is a key element in our strategy for improved profitability. Our special steels are also important for the sustainability strategies of our customers to reduce their climate footprint, since our steels contribute to lighter weight and a longer useful life in many applications.
SSAB Europe’s operating profit rose to SEK 1,512 (-566) million and the operating margin increased to 15% (-9%), driven by a strong market, stable production and an improved product mix. SSAB America’s operating profit increased to SEK 1,151 (-10) million, driven by rising market prices for plate. The operating margin rose to 24% (0%).
The spread of Covid-19 has decreased at SSAB’s production sites. We continue with a number of measures to limit the risks of infection and production has run without impact. Looking ahead, the market outlook is positive. During Q3, SSAB Special Steels and SSAB Europe will complete planned maintenance and we expect seasonally lower activity on the European market.
SSAB has long been at the forefront of the green transition in the steel industry. During Q2, we took further steps towards being first in the world to get fossil-free steel on the market. For the first time ever, iron ore has been directly reduced at a pilot scale using hydrogen made from fossil-free electricity. This groundbreaking step took place at HYBRIT’s plant in Luleå. So far, over 100 tonnes of sponge iron of good quality have been produced. We have also initiated a strategic collaboration with Volvo Cars, which will be the first carmaker to secure SSAB steel made from hydrogen-reduced iron ore. The great interest shown by customers means that we are exploring the prerequisites to convert to fossil-free production in Luleå earlier than the original plan. We see positive effects from our leading position in sustainability and in June, we issued a five-year sustainability-linked (SLBP) bond of SEK 2bn. This gives us better conditions to finance activities and to reach our sustainability goals.
Invitation to SSAB’s second quarter 2021 results briefing
SSAB invites you to a presentation of the report for the second quarter of 2021 at 9.30am CEST on Wednesday, July 21, 2021. The briefing will take place by conference call that will also be webcast on SSAB’s website.
The report for the second quarter of 2021 will be presented by SSAB’s President and CEO Martin Lindqvist, and CFO Håkan Folin. The briefing will be held in English.
Time of briefing: Wednesday, July 21, 2021 at 9.30am CEST.
Sweden:+46 856 6426 51
United Kingdom:+44 3333 0008 04
United States:+1 8558 5706 86
Conference ID: 64852476#
Link to webcast: https://edge.media-server.com/mmc/p/9nxg4sju
For further information, please contact:
Investor Relations: Per Hillström, Head of IR, firstname.lastname@example.org, +46 70 2952 912
Media: Viktoria Karsberg, Head of Corporate Identity and Group Communications, email@example.com, +46 8 4545 734
This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that SSAB AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.30am CEST on July 21, 2021.