ArcelorMittal, a leading global steel and mining company, has released its financial results for 2023, showcasing the company’s strong performance and commitment to safety and strategic growth. The year was marked by impressive financial results, despite facing challenges including the Kostenko mine accident, which has spurred the firm to take significant steps in prioritizing health and safety.
Financial Highlights of 2023
The company’s financial strength was evident with an EBITDA of $7.6 billion and a free cash flow (FCF) of $2.9 billion. However, the net income of the firm was affected by non-cash, non-recurring items, including a $2.4 billion negative impact from the disposal of Kazakhstan operations and a $1.4 billion impairment of Acciaierie d’Italia (ADI) in Italy. After adjusting for these items, the adjusted net income stood at $4.9 billion. By the end of 2023, the company’s net debt was $2.9 billion, and it repurchased a total of 45.4 million shares.
Emphasizing Safety and Sustainable Development
Following the Kostenko mine accident in October 2023, ArcelorMittal has demonstrated its commitment to health and safety. The company has commissioned a comprehensive independent safety audit by dss, with key recommendations set to be published in September 2024. CEO Aditya Mittal expressed determination to make the company an ultimately accident-free workplace.
Strategic Growth and Future Plans
ArcelorMittal is not just focusing on immediate results but also laying a solid foundation for future growth. The company has announced investments in new projects which are expected to add approximately $1.8 billion to EBITDA by the end of 2026. These projects include expansions in Brazil, Europe, Liberia, India, and the United States.
In line with global sustainability trends, ArcelorMittal is also focusing on decarbonized steel solutions. Projects such as the EAF at Gijon and partnerships for low carbon steel supply underscore this commitment. The board has proposed to increase the annual base dividend from $0.44 per share in 2023 to $0.50 per share in 2024.
With these results and strategic plans, ArcelorMittal is set to continue its trajectory of growth, profitability, and safety enhancements in the coming years.
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