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ArcelorMittal (NYSE:)’s subsidiary, AMNS India, in which the steel giant holds a 60% stake, posted a robust year-on-year (YoY) increase in Q3 EBITDA of over 160% to $533 million, compared to $204 million in the year-ago-period. The company reported on Thursday that this significant growth was primarily driven by increased steel shipments and reduced costs, including gains from the unwinding of a hedge.
Despite this YoY increase, there was a sequential decline of 5% from the second quarter’s $563 million due to lower steel selling prices.
AMNS India also reported a YoY increase in crude steel production by 17%, reaching 1.9 million tonnes in Q3 2023. This growth comes despite the impact of planned maintenance during Q3 2022. Steel shipments also experienced a boost, with a YoY increase of 5% to match the production figure.
AMNS India follows a calendar year for accounting, and these results are part of ArcelorMittal’s three and nine-month results.
Looking ahead, AMNS India has ambitious expansion plans for its Hazira plant in Gujarat. Currently operating at 8.6 million tonnes per annum (mtpa), the company aims to reach 15 mt by 2026. The first phase of upstream and downstream expansion is reportedly progressing well.
The company’s renewable energy project, with a nominal capacity of 975MW, is on track for completion in the first half of 2024. This project is expected to supply over 20% of the Hazira plant’s electricity needs, further cementing the company’s commitment to sustainable operations.
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