First-quarter shipments were down, but improved steel prices helped boost revenue at Algoma Steel Inc.
Results from the fiscal first quarter ended June 30, released Wednesday night, show consolidated revenue of $934.1 million, 18.4 per cent higher than $789.1 million posted for the same quarter last year.
Consolidated income from operations was $328.9 million, compared to $252.2 million in the prior-year quarter.
Shipments totalled 537,524 tons during the quarter, down 11.9 per cent compared to 610,057 last year.
But the average realized price of steel was $1,632 a ton, up 37.8 per cent from $1,185 per ton during the same period last year.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), considered an important indicator of operating performance and profitability, was $357.7 million, up from $280.8 million in the prior-year quarter.
The strong quarter will be a consideration as the Sault steelmaker continues negotiations with United Steelworkers Local 2251 during a 15-day extension of the contract that expired July 31.
"Our discussions with United Steelworkers Local 2251 regarding a new labour agreement are ongoing," said Michael Garcia, Algoma's chief executive officer.
"The recent 15-day extension of those talks demonstrates the willingness and desire of both sides to reach a fair and equitable agreement. We are operating the facilities normally while these talks continue and look forward to working together as we advance our collective strategy of becoming one of North America’s leading producers of green steel."
"The momentum we established in fiscal 2022 continued with another quarter of strong results in what has been a volatile operational environment. We delivered year-over-year improvement in revenue and adjusted EBITDA even as we undertook a significant planned outage to upgrade our plate mill facility. Our results continue to reflect our differentiated execution, along with the hard work and dedication of the entire Algoma team," Garcia said in a news release.
"This summer has been a busy time for Algoma. The construction of our transformative electric arc furnace project continues on budget and on time towards a targeted startup in 2024. At the same time, the first of our two-phase plate mill modernization project was completed and is ramping up during the third calendar quarter of this year. In July, we significantly advanced our capital allocation program by repurchasing approximately 28 per cent of our outstanding shares. We continue our focus on disciplined execution during dynamic market conditions."