Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ARCELORMITTAL. We currently have 9 research reports from 2 professional analysts.
|07Dec16 11:30||GNW||ArcelorMittal European Media Day|
|17Nov16 07:00||GNW||ArcelorMittal, Evonik, LafargeHolcim and Solvay investigate trans-sector technological potential to reduce carbon emissions under a new "Low Carbon Technology Partnerships Initiative (LCTPi) (*)"|
|08Nov16 01:32||GNW||ArcelorMittal expanding global portfolio of automotive steels in support of Action 2020 goals|
|08Nov16 06:01||GNW||ArcelorMittal Europe reports EUR371m operating profit for Q3 2016|
|08Nov16 06:00||GNW||ArcelorMittal reports third quarter 2016 results|
|28Oct16 02:00||GNW||ArcelorMittal announces the publication of third quarter 2016 Ebitda sell-side analyst consensus figures|
|14Oct16 03:55||GNW||ArcelorMittal announces change of date for Q3 2016 results|
Frequency of research reports
Research reports on
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.
Q3 15: the going gets (real) tough …
06 Nov 15
ArcelorMittal's 9 months figures: revenues reached US$15,589m (-7.3% qoq, -22.4% yoy), EBITDA US$1,351m (-3.5% qoq, -29.1% yoy), operating income a mere US$20m (vs US$579m and US$959m respectively) and finally, net result a loss of US$711m vs US$179m and US$22m in Q3 14. Note Q3 (mainly) includes a US$527m charge at the operating level relating to inventory write-offs. Net debt at the end of Q3 totalled US$16.8bn vs US$16.6bn in June and US$17.8bn in Q3 14. The group issued a profit warning (the second one this year), now calling for an EBITDA of US$5.2-5.4bn for FY15 vs US$6-7bn previously, on the back of deteriorating conditions, driven both by the pressure on the price side (Chinese exports) and a wait-and-see attitude from customers. The group also announced its intention to suspend its dividend for 2015.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
GTL transaction not going ahead
01 Dec 16
Intelligent Energy (IEH) has announced that the deal to acquire the Energy Management Business of GTL will not now be consummated. The move leaves management free to concentrate on driving sales of commercially ready B2B products, which is a key element of its strategy. We adjust our FY17e revenue estimate while leaving our pre-exceptional losses and cash-flow forecasts unchanged.
GMP FirstEnergy ― UK Energy morning research package
30 Nov 16
Gran Tierra (GTE CN)1, 6; BUY, C$5.50: Equity financing and acquisition of two blocks from Ecopetrol | Northern Petroleum (NOP LN)1; SPECUATIVE BUY, £0.15: Farm out and equity issue | President Energy (PPC LN) (not covered): IFC Equity Subscription | Primeline Energy (PEH CN) (not covered): 2Q16 Results ended 30 September 2016 | Faroe Petroleum (FPM LN)6 ; BUY, £1.20: Oda update in Norway | Jersey Oil & Gas (JOG LN)1 ; Under Review: Placing | SacOil (SAC LN/SCL SJ)1 : SPECULATIVE BUY, £0.016, Trading Update
24 Nov 16
Quixant* (QXT): Gaming gains (CORP) | SCISYS* (SSY): Bringing good news from Germany (CORP) | Hayward Tyler Group*: Contract wins (CORP) | Sound Energy (SOU): TE-7 flow rate and fund raise (BUY) | Water Intelligence* (WATR): Growth and improving returns in a defensive market (CORP) | Imaginatik* (IMTK): Interim trading update (CORP)
Operating profits and net cash position – restored; market outlook – precarious
01 Dec 16
The turnaround was noticeable Lonmin’s full-year (September-ending) results were ahead of consensus and AV’s estimates. Sales came in at $1.1bn (-14% yoy) as the average realised (USD-denominated) PGM prices and sales volumes were down yoy 12% and 2%, respectively. However, platinum sales (736koz) were much ahead of earlier guidance (700koz) – thanks to certain smelting/processing efficiencies, which helped more than offset the impact of reorganisation-related disruptions. After two consecutive years (FY14-15) of hefty operating losses, Lonmin finally reported an adjusted operating profit (even though feeble) of $7m. This was facilitated by the record weakness in the South African rand (down from ZAR12/$ in FY15 to ZAR14.77/$ in FY16) and ZAR1.3bn of cost savings – 86% higher than the earlier target. Disappointingly, Lonmin recognised $335m of asset impairments (vs. $1.8bn in FY2015), which resulted in a full-year net loss of $400m. But the turnaround in reported OCFs – inflow of $58m vs. an outflow of $12m – was a much-needed improvement, which, along with conservative capex (-35% yoy) of $87m, resulted in a net cash position of $173m (with no short-term repayments) vs. a net debt position of $185m (at end-FY15). But the guidance spells caution For FY17, management targets conservative platinum sales of 650-680koz, while unit costs are expected to remain under pressure – ZAR10,800-11,300/oz vs. ZAR10,748/oz achieved in FY16. On the other hand, capex plans would be aggressive – ZAR1.8bn (which includes ZAR400m for the tailings project – already delayed by almost two years) vs. ZAR1.3bn spent in FY16.