ArcelorMittal Kryvyi Rih reports massive loss of $1.3 billion, 'battles for survival'
Photo: EPA

ArcelorMittal Kryvyi Rih, amidst a year marked by a full-scale invasion, has reported a substantial net loss exceeding UAH 49 billion ($1.3 billion), the press service of the company has reported.

For in-depth analysis and longer stories, follow us on LinkedIn

This staggering figure stands in stark contrast to the net profit of UAH 25.28 billion ($0.9 billion) achieved by the company in the previous year.

At the end of 2022, the plant's assets amounted to UAH 52.68 billion ($1.4 billion), its own capital amounted to UAH 28.21 billion ($0.8 billion), and long-term liabilities amounted to UAH 6.05 billion ($164 million).

According to international financial reporting standards, in 2022 the company recorded losses in the amount of UAH 36 billion ($0.98 billion) due to the impairment of its fixed assets as a result of negative changes in the economic environment caused by Russian military aggression.

Because of the war, the general level of utilization of production capacities of AMKR did not exceed 20-25%. At the same time, in 2022, ArcelorMittal Kryvyi Rih invested $181.4 million in production development.

"Now, ArcelorMittal Kryvyi Rih continues to fight for survival, having survived last year's difficulties related to the blockade of the main seaports, as well as power outages and even a missile attack. We manage to maintain a satisfactory state of liquidity of the company, in particular by attracting credit funds under the guarantees of the ArcelorMittal group," noted AMKR CEO Mauro Longobardo.

In an interview with Forbes, he said that the company suffered great losses, because in the first months of the war, all the logistics chains were broken, yet they were paying salaries to employees.

According to him, the plant plans to gradually restore more and more production processes and expects to transition to a positive EBITDA indicator in the second half of this year.

Last year, the enterprise produced 23% of the planned volume of steel, and 22.8% of rolled steel.

ArcelorMittal is the largest producer of steel fittings and wire rods in Ukraine. Owned by a British businessman from India Lakshmi Mittal. The company owns the largest mining and metallurgical plant ArcelorMittal Kryvyi Rih (previous name – Kryvorizhstal) and a number of small enterprises, in particular, ArcelorMittal Beryslav.