Arcelormittal Stock Price, News & Analysis

ArcelorMittal is launching a CAD$1.8 billion decarbonisation project at its Dofasco plant in Hamilton, Ontario, aiming to cut carbon emissions by 3 million tonnes annually. This initiative will transition the facility to DRI-EAF steelmaking, significantly lowering its carbon footprint by eliminating coal in production. Backed by CAD$900 million from Canadian federal and Ontario provincial governments, the project is crucial for ArcelorMittal's commitment to reducing carbon intensity by 25% by 2030 and achieving net zero by 2050, with anticipated completion by 2028.

ArcelorMittal has announced a $17.5 million investment in Form Energy Inc. through its XCarb® Innovation fund, aligning with Form's $450 million Series E financing round. This follows a previous investment of $25 million made in July 2021. Form Energy is focused on developing multi-day energy storage systems, crucial for a renewable electric grid. The company is currently narrowing down locations for its first manufacturing facility. Additionally, both companies are collaborating to develop tailored direct reduced iron for Form’s battery technology.

ArcelorMittal hosted an investor event at AM/NS India’s Hazira plant, marking its first since the acquisition in December 2019. The event highlighted significant improvements in AM/NS India’s financial performance, including strong growth in steel production and EBITDA, and a reduction in net debt. The company is committed to enhancing its operational efficiency and decarbonizing the Indian steel industry, aiming to increase its capacity to approximately 15 million tonnes by early 2026. AM/NS India positions itself to capture market growth in a domestic steel market projected to reach 300 million tonnes by 2030.

On September 26, 2022, ArcelorMittal announced the issuance of €600 million in 4.875% notes due September 26, 2026, as part of its €10 billion wholesale Euro Medium Term Notes Programme. The issuance closed today, with proceeds earmarked for general corporate purposes and the refinancing of existing debt. The press release clarifies that this does not constitute a public offering and that no steps have been taken in jurisdictions requiring registration. Investors are cautioned about the risks associated with the notes, including the possibility of a decline in value.

ArcelorMittal has released its half-year report for the period ending June 30, 2022. The report is accessible on its corporate website and has been filed with the U.S. SEC as Form 6-K. In 2021, the company achieved revenues of $76.6 billion and produced 69.1 million metric tonnes of crude steel, alongside 50.9 million metric tonnes of iron ore. ArcelorMittal aims to create innovative steels that reduce energy use and carbon emissions, aligning its vision with sustainability goals.

On July 29, 2022, ArcelorMittal announced a new share buyback program to repurchase 60,431,380 shares, totaling approximately $1.4 billion. This initiative is part of a broader strategy, bringing total buybacks for 2022 to around $3.4 billion. The program, authorized by shareholders on May 4, 2022, aims to fulfill obligations related to debt and employee share programs and to reduce share capital. The completion is anticipated by May 2023, subject to market conditions. Notably, a significant shareholder opted not to participate in this program.

ArcelorMittal has signed an agreement to acquire Companhia Siderúrgica do Pecém (CSP) for an enterprise value of approximately $2.2 billion. The acquisition aims to strengthen ArcelorMittal's position in Brazil's steel industry and introduce synergies worth over $50 million. CSP operates a state-of-the-art facility capable of producing 3 million tonnes of high-quality slabs annually. The deal awaits regulatory approvals, including CADE in Brazil, expected by late 2022. The acquisition supports ArcelorMittal's ambitions to develop low-carbon and green hydrogen initiatives in the region.

ArcelorMittal (MT) reported strong financial results for 2Q 2022, with operating income of $4.5 billion and net income of $3.9 billion. EBITDA reached $5.2 billion, marking the fifth consecutive quarter above $5 billion. Despite a 6.3% drop in steel shipments to 14.4Mt, higher average selling prices boosted sales to $22.1 billion. The company announced a proposed $2.2 billion acquisition of Companhia Siderúrgica do Pecém (CSP) in Brazil and completed the acquisition of voestalpine’s Hot Briquetted Iron plant in Texas. The solid financial performance highlights ArcelorMittal's strategic focus on low-carbon steelmaking.

On July 20, 2022, ArcelorMittal announced the consensus estimates for its second quarter of 2022, compiled by Visible Alpha from 13 sell-side analysts. Key figures include an expected EBITDA of $5,088 million, a net income of $3,719 million, and earnings per share (EPS) of $4.05. The estimates reflect market expectations and are not confirmed by the company. ArcelorMittal, recognized as a leading steel and mining entity, emphasizes innovative production methods targeting sustainability and efficiency.