Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ARCELORMITTAL. We currently have 10 research reports from 2 professional analysts.
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FY16 OK, some hopes for FY17
10 Feb 17
ArcelorMittal reported FY16 results. Revenues reached US$56,791m (-10.6%), EBITDA US$6,255m (+19.6%), operating income US$4,161m (vs US$-4161m) and net income US$1,779m (vs US$-7,946m), keeping in mind FY15 was heavily burdened by impairments (US$4.8bn) and exceptional charges (US$1.4bn). Net debt at the end of FY16 stood at US$11,059m (vs US$15,684m a year ago). No real outlook was given, other than the good momentum mentioned in the market in early 2017.
Q3 OK but the outlook is not overly optimistic
08 Nov 16
Arcelor released Q3 16 results. Sales reached US$14,523m (-7%), EBITDA US$1,897m (+40%), EBIT US$1,204m (vs US$20m) and net income US$680m (vs US$-711m). Over 9 months, sales amounted to US$42,665m (-14%), EBITDA US$4,594m (+11%), EBIT US$3,352m (+186%) and net income US$1,376m (vs US$-1,260m). Net debt at the end of Q3 was US$12,193m (US$12,747m in H1 and US$15,684m at year-end 2015). The group indicates that profitability in Q4 will be lower, due to the combination of lower steel prices in the US and the rapidly rising metallurgical coal prices.
H1 16 not bad at all
29 Jul 16
Sales amounted to US$28,142m (-17%), EBITDA US$2,697m (-2.9%), operating income US$2,148m (+86%), and net income US$696m (vs US$-549m). EBITDA almost doubled in Q2 vs Q1 (US$1.77bn vs US$0.93bn) and came in above consensus (US$2,418m) for H1. Note operating income is boosted by a US$0.83bn one-off gain on employee benefits in the US, as is net income. Net debt reached US$12.7bn vs US$17.3bn a year ago and US$13.3bn in Q1 (keep in mind the US3.1bn capital increase in Q1 16). In terms of outlook, the group still anticipates an EBITDA of « over US$4.5bn » for FY16 and is « cautiously optimistic » while some may have expected an upgraded guidance.
Q1 16 roughly in line
06 May 16
Revenues reached US$13,399m (-22.8%), EBITDA amounted to US$927m(-32.7%), operating income US$275m (-48.2%) and net loss US$416m (vs US$728m). Net debt at the end of Q1 was US$17.3bn (vs US$15.7bn at year-end 2015) while the pro-forma net debt (i.e. post capital increase and the disposal of Gestamp) reached US$13.3bn. The company expects FY16 EBITDA to be « in excess of US$4.5bn » (unchanged vs the comment at the end of Q4), the impact of the improving steel environment being expected to be fully reflected in the H2 numbers. However, this will lead to working capital consumption (currently estimated at c.US$500m) but the group still believes it can be FCF positive for the full year.
Weak FY15 and a massive rights issue
05 Feb 16
Arcelor surprisingly released FY15 results today (was planned next Friday) and announced a €3bn capital increase. FY15 looks in line (i.e. weak) with sales of US$79.3bn, EBITDA of US$5.23bn, operating income of US$-4.1bn and net result of US$-7.9bn. Results include US$4.8bn of impairments (mainly on Mining assets) and US$1.4bn in inventory write-downs on weak steel prices. No need to say these results and the capital increase will weigh on the share price. On top of this, the guidance for FY16 so far calls for an EBITDA of US$4.5bn (i.e. another c. -15%) "in current operating conditions". This would be far below our and the market’s expectations (US$5.4-5.5bn). The group also announced the disposal of its 35% stake in Gestamp (a Spanish supplier to the auto industry) for €875m. The Mittal family will take part in the capital issue to take place in H1 on the basis of its current stake, and thus invest c.US$1.1bn.
28 Feb 17
Avingtrans^ (AVG): Satisfactory interim results: small bolt-on acquisition (HOLD) |Seeing Machines* (SEE): Major contract win for Guardian (CORP) |Revolution Bars (RBG): Good H1 generates 3% FY forecast increase (BUY) |Victoria* (VCP): Upgrading forecasts post acquisition (CORP) |Wentworth Resources (WRL): Q4 2016 results and operational update (BUY)
Sound Energy is an AIM-listed upstream gas company
27 Feb 17
Sound Energy is an AIM-listed upstream gas company with a balanced exploration and appraisal portfolio focussed on three strategic assets in onshore Morocco and Italy. The share price has trebled in the past year, following drilling success in the Tendrara licence of eastern Morocco. The work program of the next 12-18 months has the potential to de-risk additional gas resources in Morocco and Italy, providing short-term catalysts for further upside in the share price. However, any disappointing drilling results might leave the stock rather exposed given recent momentum and lack of certified reserves, although we recognise that the optionality in the portfolio would remain substantial.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Indices are not as flat as pancakes
27 Feb 17
On Shrove Tuesday, some of the various small cap indices we follow continue to hit or remain close to all-time highs, benefiting from growing optimism about the global economy. The State of the Union Address to Congress later today and the UK Budget next Wednesday are key forthcoming events that markets await. In the Budget, the updated OBR forecasts regarding the prospects for UK growth and the state of the public finances will no doubt, be the focus. Primarily, the accelerating flow of forthcoming company results will continue to be the key for investors as we await the passage of the Brexit Bill.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.