ArcelorMittal(MT)2023-05-04 20:30Financial Data and Key Metrics Changes - The company reported an improvement in EBITDA per tonne to 600 million for Q2 2023 [4][9][47] - In NAFTA, shipments increased by approximately 250,000 tonnes quarter-on-quarter, driven by higher demand and improved production levels [10][45] Market Data and Key Metrics Changes - In Europe, production is expected to be slightly lower due to two furnace shutdowns, but profitability is anticipated to improve as prices rise and costs decrease [11][12] - The company noted that inventory levels are low across regions, which should support steel consumption going forward [26] Company Strategy and Development Direction - The company is focusing on strategic capital expenditures and mergers and acquisitions to enhance earnings power while maintaining a strong balance sheet [5][6] - A joint venture was announced with Casa dos Ventos to develop a 554-megawatt wind power project in Brazil, which aims to supply up to 38% of the company's electricity needs in the country [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving shipment targets despite production challenges in Europe, indicating confidence in mitigating impacts from recent incidents [19][20] - The company is exploring energy projects in Europe but has not yet found economically viable options, while gas and power prices are normalizing [21][22] Other Important Information - The company is experiencing a recovery in apparent steel consumption in Brazil, with stable domestic volumes despite a slower start to the year [33][34] - The company is maintaining its guidance for working capital release in 2023, despite challenges in Q1 due to production issues [51][52] Q&A Session Summary Question: Can you share the building blocks of your Q2 EBITDA? - Management provided insights on contributions from Brazil, NAFTA, and Europe, highlighting the impact of the CSP acquisition and production recovery [9][10][11] Question: Why extend the buyback program to May 2025? - Management emphasized the belief in continued free cash flow generation and the commitment to return 50% of free cash flow to shareholders [14] Question: What is the timeline for the restart of furnaces in Europe? - Management indicated a target for June for the restart of the furnaces in Spain and Dunkerque, with ongoing repair works progressing well [17][18] Question: What is the outlook for steel spreads and margins? - Management noted stable prices in Europe and the U.S., with improving spreads and low inventory levels supporting future consumption [25][26] Question: Can you provide an update on the mining segment's cost increases? - Management clarified that cost increases were not the main driver of profitability changes, attributing it more to pellet premiums and sales dynamics [66]