CSN had a net profit of R$ 237.6 million in the third quarter, a drop of 82% over the performance of the same period in 2021, according to a balance sheet released this Monday.
The company, which has operations in steel, cement, logistics and energy, found cash generation measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 2.7 billion reais, 37% lower than in one year before.
Analysts, on average, expected net income of R$1.2 billion for CSN with an Ebitda of R$3 billion, according to Refinitiv data.
CSN’s steel production totaled 1.027 million tons in the third quarter, up 15.4% in the sequential comparison. Alloy sales advanced 18.2% to 1.16 million tonnes in the period.
CSN also announced a reduction in investment expectations (capex) for 2022, from R$4.1 billion to R$3 billion. It also predicted to produce a volume of iron ore plus purchases from third parties of 34 million tons and raised the financial leverage forecast, measured by the net debt/adjusted EBITDA indicator, from 1 time to between 1.75 and 1.95 between closings of the annual balance sheets for 2022 and 2023.
CSN, which has sought to reduce its leverage over the past few quarters, ended September with a net debt to adjusted Ebitda ratio of 1.69 times.
The company’s results were released a few days after rival Usiminas, of which CSN is also a partner, published a drop in third-quarter profit, pressured by higher costs, although performance in the period was above market expectations.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
