ArcelorMittal Nippon Steel India saw its EBITDA (earnings before interest, taxes, depreciation and amortization) fall by 23.5 percent to $107 million in the quarter ending June 30 from $140 million in the previous quarter.
The company, a joint venture between the world’s biggest and Japan’s largest steelmakers, follows January to December financial year.
Steel production by ArcelorMittal Nippon Steel India, or AMNS, was down 29 percent to 1.2 million tonnes, as compared to 1.7 million tonnes in the first quarter.
"AMNS India’s operations were impacted by the COVID-19 pandemic during 2Q 2020 with lockdown measures (in particular impacting April 2020). As lock down measures lift, the assets are currently running at higher utilisation levels then the low levels during the peak impacts during 2Q 2020," ArcelorMittal said in a statement on July 30, while announcing its consolidated numbers for the second quarter.
The India unit expects to have an annual production of 7 million tonnes in 2020 against 7.23 million tonnes in the previous year.
During the quarter, the company acquired the Odisha Slurry Pipeline Infrastructure for net $245 million (Rs 1,860 crore).
" This secures an important infrastructure asset for raw material supply to Hazira steel plant," the company said.
AMNS India's production facility is located in Hazira, Gujarat. Odisha Slurry operates a 253-km long pipeline carrying iron ore from mines to the Hazira plant.
In December 2019, ArcelorMittal had completed the acquisition of Essar Steel.
The world's leading steelmaker overall reported a better than expected performance for the second quarter. Its EBITDA for the quarter was $707 million, which was less than half the year-ago figure, but higher than most estimates.