Essar Steel Algoma is calling 2015 a “milestone year,” after announcing the close of its fiscal year on July 27.
The company reported $194.9 million in EBITDA (earnings before interest, taxes, depreciation and amortization), compared to a loss of $55.2 million in 2014.
A highlight of the year was a recapitalization and refinancing program valued at US$1.4 billion. The company additionally marked an income of $76.3 million for the period ended March 31, 2015, as compared to a loss of $240.4 million for the same period ended March 31, 2014.
Operationally, Essar achieved a reduction in costs of CDN $12 per ton, while maintaining shipment volumes.
Revenue was up 11.9 per cent over the same period in 2014, a reflection of shipping volumes and higher selling prices.
Essar Steel Algoma’s CEO Kalyan Gosh called 2015 a “turnaround” year for the company.
“Through the recently announced modernization and expansion program, we expect to offer a much broader range of advanced steel grades over the next 36 months as we introduce best available technology," Ghosh said in a news release. “When combined with our return to profitability and low-cost model, this investment will put us in a much stronger competitive position."
The news comes on the heels of an announcement of funding of up to $60 million from the provincial and federal governments to help Essar upgrade its mill, to improve its production processes and increase the range and quality of its steel sheet and steel plate products.
It’s part of a larger, $240-million overhaul at the mill, which is expected to be complete by 2022.
Based in Sault Ste. Marie, Essar Steel Algoma manufactures and sells hot and cold rolled steel products, including sheet and plate.
