Luxembourg-based steelmaker ArcelorMittal has reported what it calls a “robust financial performance” for 2021, including operating income of nearly $17 billion and net income of nearly $15 billion. Its fourth quarter net income of more than $4 billion was down from the previous quarter but more than three times the net income of the fourth quarter of 2020.
“2021 was a strong year in which we accelerated progress on many fronts,” comments Aditya Mittal, CEO of ArcelorMittal. “The global economic rebound post initial COVID-19 restrictions being lifted supported buoyant demand in all markets delivering very high levels of profitability. This further strengthened our balance sheet and enabled the delivery of consistent returns for shareholders.”
Mittal includes on a list of “targeted investments”, the construction of a joint venture electric arc furnace (EAF) mill underway in Calvert, Alabama.
In reviewing 2021, Mittal adds, “Perhaps most critically we intensified our commitments to decarbonize, recognizing that steel can and must make a significant contribution to achieving net zero. We stated an ambition to reduce our CO2 emissions intensity by 25 percent by 2030 and continue to invest in multiple technology routes that will help us succeed. We launched our XCarb vision which includes an investment fund into the clean energy technologies that support this transformation.”
In terms of 2021 steelmaking volume, ArcelorMittal has reported a 9.2 percent rise in steel shipments compared with the year before.
Looking ahead, on the recycling and decarbonization front, the company points to its upcoming investments in EAF technology in France and a prediction for the “sales of XCarb green steel certificates [to] increase to a 600,000-metric-ton run rate by the end of 2022.
ArcelorMittal says it expects its steel shipments in 2022 to grow by 3 percent compared with 2021 and it “expects strong earnings before interest, taxes, depreciation and amortization (EBITDA) and free cash flow generation in 2022.”