Q2 2024 Companhia Siderurgica Nacional SA Earnings Call (English, Portuguese) Transcript
Key Points
- Companhia Siderurgica Nacional (SID) reported a significant increase in EBITDA, reaching $2.6 billion in Q2 2024, a 35% rise from Q1 2024.
- The mining segment achieved its best performance since 2016, with a notable reduction in production costs from $25 per ton to $21.2 per ton.
- The steel segment saw a recovery with sales volume exceeding 1.1 million tons, the highest since Q2 2022, and a 40% increase in EBITDA.
- The cement segment reported record production and sales, with 3.6 million tons sold and a 28% EBITDA margin, the highest since acquiring LafargeHolcim.
- The logistics segment experienced strong growth, with a 9.2% increase in EBITDA compared to the previous quarter, benefiting from positive seasonality and product diversification.
- The energy segment underperformed due to extreme rainfall in Rio Grande do Sul, impacting overall results.
- The company experienced a one-time increase in leverage, rising from 3.3 times to 3.36 times, primarily due to exchange rate impacts and dividend payments.
- Working capital consumption and higher investment levels led to a negative adjusted cash flow of $1.2 million.
- The steel segment's margins remain compressed despite improvements, indicating ongoing challenges in achieving optimal profitability.
- Imports continue to pose a challenge, with import penetration reaching 22% in Q2 2024, affecting domestic market competitiveness.
Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to CSN's conference call to present results for the second quarter 2024. We have the company executive officers with us.
We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the company's presentation. Ensuing this, there will be the question-and-answer section, at which time further instructions will be given. Today's event can be accessed at ri.csn.com.br, where the presentation is also available. The replay service will be available soon after the call.
Before proceeding, we would like to declare that some of the statements herein are mere expectations or trends and are based on the current assumptions and opinions of the company management, and that future results, performance, and events may differ materially from those expressed herein, which do not constitute projections.
In fact, actual results, performance, or events may differ materially from those expressed or implied by forward-looking statements as a result of several
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