The fiscal performance of Algoma Steel in the third quarter of fiscal year 2024 showcased a mixed picture of progress and challenges. While the company reported a notable increase in consolidated revenue compared to the prior-year quarter, it also recorded a loss from operations and a significant net loss.
Despite this, there was an improvement in adjusted EBITDA, indicating potential resilience in operational efficiency. Algoma reported a negative adjusted EBITDA of CAD -1 million for the quarter, compared to CAD -35.9 million in Q3 FY2023.
However, challenges stemming from an incident at the coke-making plant in January 2024 are expected to impact future shipments, costs, and profitability. Although repairs have been completed at its blast furnace and production is gradually resuming, the company expects reduced shipments, increased costs, and lower profitability in the upcoming quarter.
Michael Garcia, the company’s CEO, commented with cautious optimism, acknowledging the hurdles faced while emphasizing the company's determination to navigate through them. Mr. Garcia also stated that their EAF project continues to advance and it is expected to start by late 2024.
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