Report for the first quarter 2021: Strong recovery – SSAB Special Steels posts record result and shipments
April 26, 2021 7:30 CEST 6 min read
The first quarter · Revenue was SEK 19,661 (18,772) million · EBITDA was SEK 2,860 (1,286) million · Operating profit was SEK 1,993 (343) million · Earnings per share were SEK 1.46 (0.17)
Comments by the CEO
SSAB’s earnings improved sharply during the first quarter of 2021. Demand is strong, prices are increasing and we have taken strategic steps in our transition to a fossil-free steel production. The recovery that started during autumn last year has strengthened during the first quarter. SSAB’s production level has been stable and together with better prices and higher shipments, the result increased by SEK 1.4 billion compared to the fourth quarter of 2020. Operating profit for the first quarter amounted to SEK 1,993 (343) million.
There is strong demand for high-strength steel and SSAB Special Steels maintained a high, stable production rate. Shipments reached a record high SEK 376 (305) thousand tonnes and operating profit increased to a record level of SEK 904 (458) million in the first quarter of 2021. The operating margin increased to 18% (10%).
SSAB Europe’s result increased to SEK 758 (0) million. Strong demand has resulted in higher shipments and better prices. SSAB America’s result also increased, to SEK 268 (106) million. Better margins contributed positively, whereas shipments were affected by weather-related issues in North America as well as low opening balance of slab inventories.
Measures to limit the spread of Covid-19 continue and production has run without any major impact. Market conditions are favorable and we expect good activity during the second quarter of 2021.
SSAB is leading the green transition in the steel industry and the goal is to be fossil free by latest 2045. We have taken additional steps during the quarter to be world-first with fossil-free steel. Fossil-free steel will not only reduce our own emissions, we can also help our customers to reduce their climate impact, while strengthening their competitiveness. In April, we entered into a strategic collaboration with AB Volvo on the world’s first vehicles to be made of fossil-free steel with shipments for concept vehicles already this year. The great interest in fossil-free steel shown by customers, means that SSAB is exploring how to convert to fossil-free production in Luleå faster than currently planned. The conversion of Oxelösund proceeds according to plan and investments have started.
Together with our partners, LKAB and Vattenfall, we will create something unique for our customers – the most efficient fossil-free value chain in the world. The three companies have together decided that the industrialization of HYBRIT will begin in Gällivare, with the world’s first demonstration plant for fossil-free sponge iron, the feedstock for fossil-free steel. The plant is scheduled for completion in 2026 and capacity will amount to 1.3 million tonnes of fossil-free sponge iron. We are also starting the construction of a hydrogen storage facility outside Luleå to develop the storage technology. Storage will play an important role for future power and energy balancing by, for example, using stored hydrogen gas when the electricity system is under strain. SSAB:s transition is progressing at the highest pace possible and I am convinced that we can further strengthen our leading position.
Invitation to SSAB’s report for the first quarter of 2021 presentation
SSAB invites you to a presentation of the report for the first quarter of 2021 at 9.30am CEST on Monday, April 26, 2021. The briefing will take place by conference call that will also be webcast on SSAB’s website. The report will be published at approximately 7.30am CEST on the same date.
The report for the first 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: Monday, April 26, 2021 at 9.30am CEST.
Sweden: +46 856 6426 51
United Kingdom: +44 3333 0008 04
United States: +1 8558 5706 86
Conference ID: 27447361#
Link to webcast: Go to webcast
For further information, please contact:
Investor Relations: Per Hillström, Head of IR, email@example.com, +46 70 2952 912
Media: Viktoria Karsberg, Head of Corporate Identity and Group Communications, firstname.lastname@example.org, +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 April 26, 2021.