Key figures for 3Q 2022

Key highlights:

  • Health and safety performance: Protecting the health and well-being of employees remains the Company’s overarching priority; LTIF rate3 of 0.54x in 3Q 2022 as compared to 0.67x in 2Q 2022
  • Steel spread compression and seasonally lower shipments: 3Q 2022 was impacted by a negative price-cost effect, energy costs headwinds and a 5.6% sequential decrease in steel shipments to 13.6Mt (-7.1% lower vs. 3Q 2021). Steel shipments remain broadly stable YoY excluding ArcelorMittal Kryvyi Rih which is impacted by the ongoing war in Ukraine
  • Operating income: $1.7bn in 3Q 2022 (vs. $4.5bn in 2Q 2022); 9M 2022 operating income of $10.6bn (vs. $12.4bn in 9M 2021)
  • EBITDA: $2.7bn in 3Q 2022 vs. $5.2bn in 2Q 2022; 9M 2022 EBITDA of $12.9bn (vs. $14.4bn in 9M 2021)
  • Net income: $1.0bn in 3Q 2022 (vs. $3.9bn in 2Q 2022); 9M 2022 net income of $9.0bn (vs. $10.9bn net income in 9M 2021)
  • Share repurchases driving enhanced value: Company repurchased a further 31m shares during the quarter (96.2m in 9M 2022); diluted share count now 873m (vs. 1,224m at end of September 30, 202020); 3Q 2022 basic EPS of $1.11/sh; 9M 2022 basis EPS of $9.76/sh vs $9.52/sh for 9M 2021 benefiting from lower share count; last 12 months ROE15 of 26%; book value per share12 of $59/sh
  • Further FCF generation: Free cash flow (FCF) of $1.1bn in 3Q 2022 ($2.0bn net cash provided by operating activities less capex of $0.8bn less minority dividends $0.1bn) despite $0.6bn investment in working capital; FCF to be supported by a working capital release in 4Q 2022
  • Financial strength: Net debt of $3.9bn at the end of September 2022 as compared to $4.2bn at the end of June 2022 and $4.0bn at the end of December 2021; Gross debt of 9.0bn as at end of September 2022

Strategic update:

  • Decarbonization leadership: ArcelorMittal breaks ground on first transformational low-carbon emissions steelmaking project in Dofasco (Canada)19
  • Strategic growth: AMNS India announced its strategy to capture growth, expand its market share and play a leading role in the development of the Indian steel industry. Expansion of the Hazira plant to a ~15Mt capacity by early 2026 is underway including automotive downstream and enhancements to iron ore operations, with capex of ~$7.4bn and targeting to increase the EBITDA capacity by 2.5x4
  • Consistently returning capital: As at September 30, 2022, the Company had completed approximately 50% (i.e. ~31 million shares or ~$0.7bn) of the previously announced share buy-back program which totaled 60 million shares, with the balance to be completed by the end of May 2023

Financial highlights (on the basis of IFRS 1,2)

“The strong market conditions enjoyed for much of the past two years deteriorated in the third quarter as seasonally lower shipments, a reduction in exceptional price levels, destocking and higher energy costs combined to put profits under pressure. The business responded quickly to the changing environment, cutting higher cost capacity to manage addressable demand and reduce fixed costs, and reducing European gas consumption by 30%.

The group’s decarbonization goals remain a central part of the strategy, with a key development being the ground breaking last month in Ontario, Canada, for a new DRI-EAF plant, which is hydrogen ready. This is an important milestone in our decarbonization roadmap and has been achieved thanks to support from both the regional and federal governments. With COP27 underway we hope for progress on measures that can accelerate the road to net zero, including the scaling up of renewable energy, critical for both the decarbonization of steel and enhanced energy security.

The short-term outlook for the industry remains uncertain and caution is appropriate. But, ArcelorMittal has the strength, resilience and experience to face the future with confidence. Supported by a strong balance sheet, we will continue to focus on executing our strategy, designed to ensure our long-term sector leadership, as well as deliver sustainable investor returns.” Mr Aditya Mittal, ArcelorMittal Chief Executive Officer