Essar Steel Algoma posts $21 million net income in October-December quarter

TORANTO: Essar Steel Algoma today posted a net income of $21.3 million for October-December quarter buoyed by higher sales and realisation.

The Ontario-based company, a unit of the Ruias-controlled Essar Steel, had reported a net loss of $30.65 million in the same quarter last year.

"The gain is attributable to higher shipments coupled with higher selling prices and lower costs," Essar Steel Algoma said in a statement.

Shipments for the quarter were 6.18 lakh tonnes, up 4.7 per cent as compared to the same period last year. Average realised sales returns improved in the quarter by 15.8 per cent.

The company said it had completed a comprehensive recapitalisation and refinancing during the quarter, resulting in a deleveraging of the balance sheet by more than $200 million and an approximate $47 million reduction in annual cash interest expense.

"While we are seeing some near-term softening in market fundamentals we are confident our balanced product mix and low cost position provide a sound foundation for strategic reinvestment in optimisation and growth in the months and years ahead," Essar Steel Algoma Chief Executive Officer Kalyan Ghosh said.