Steel Mills
August 21, 2016
Essar Steel Algoma Update
Written by Sandy Williams
Essar Steel Algoma generated positive earnings in May and June, due to higher steel pricing, resulting in net revenue of C$136 million in June and total net revenue of C$753 million for the first half of 2016. EBITDA before restructuring costs was negative C$49 million for the first six months of 2016.
For the reporting period May 14 – August 12, 2016 net cash flow was negative C$13 million, an improvement of C$30 million from earlier projections. Steel pricing, however, began softening in July due to subdued market demand, said Algoma Court Monitor Brian Denega, senior vice-president of Ernst and Young.
