Arcelormittal Stock Price, News & Analysis

ArcelorMittal (MT) has announced a definitive Equity Purchase Agreement with Nippon Steel (NSC) to acquire NSC's 50% stake in the AM/NS Calvert Joint Venture. This transaction, requested by NSC to address regulatory concerns related to its pending acquisition of US Steel, is contingent on NSC completing the US Steel deal. ArcelorMittal will pay $1 for the transaction, while NSC will inject cash and forgive partner loans totaling approximately $0.9 billion.

AM/NS Calvert, acquired in 2014, is North America's most advanced finishing facility, supplying high-quality steel to demanding customers. It features a state-of-the-art hot strip mill, continuous pickling line, coating lines, and a new 1.5mtpa electric arc furnace under construction. The facility plays a important role in supplying domestic manufacturing industries and is considering further investments to enhance its capabilities.

ArcelorMittal has released recommendations from a comprehensive workplace safety audit conducted by dss+ over nine months. The audit, commissioned in late 2023, covered fatality prevention standards, process safety management, and in-depth assessments of health and safety systems across the company's global operations.

Key findings include:

• ArcelorMittal has appropriate policies and standards, but implementation varies across the group
• There's a need to establish 'one safety culture' across the diverse organization
• Contractor safety management requires improvement

The audit resulted in six main recommendations, focusing on improving risk identification, strengthening assurance models, embedding safety culture, enhancing contractor safety management, adopting best practices for process safety management, and integrating safety into business processes.

ArcelorMittal has begun implementing these recommendations and will provide regular updates on progress towards achieving zero fatalities and serious injuries.

On the 20th anniversary of ArcelorMittal Poland, ArcelorMittal Europe CEO Geert Van Poelvoorde calls for European Union support and a firm action plan for steel to keep steelmaking alive in Europe. Since Mittal Steel acquired Polskie Huty Stali in 2004, the business has been transformed through significant investment, reducing carbon dioxide emissions by 42%, dust emissions by 90%, and energy consumption by 40%.

Van Poelvoorde emphasizes the intense pressure on European steelmakers due to high costs and cheap imports. He urges the Polish government's support during its upcoming European Council Presidency, particularly in finalizing the Carbon Border Adjustment Mechanism (CBAM) legislation. The CEO highlights the critical nature of the first six months of 2025 in defining the Commission's steel and metals action plan and the Clean Industrial Deal.

Van Poelvoorde expresses optimism about recent European Commissioner appointments, particularly the proposed Commissioner for Prosperity and Industrial Policy's focus on developing a steel and metals action plan. He stresses the importance of a strong steel industry for Europe's economic power and warns against decarbonizing through de-industrialization.

Utility Global, a company developing eXERO™ gas production technology for hard-to-abate industries, has raised $53 million in an ongoing Series C financing. The round was led by the OPG Pension Plan and joined by ArcelorMittal's XCarb® Innovation Fund, Ara Partners, and other existing investors.

ArcelorMittal and Utility Global have also entered a Collaboration Agreement to develop a commercial facility at one or more of ArcelorMittal's integrated steel plants. The funding will accelerate commercialization of Utility Global's eXERO technology, focusing on final design and productization for deploying first commercial units in 2026 under the H2Gen™ product line.

The company's technology aims to transform industries by providing a cost-effective way to reduce greenhouse gas emissions while producing low-carbon intensity fuels and chemicals.

ArcelorMittal has invested $5 million in Utility Global through its XCarb® Innovation Fund, as part of Utility Global's $53 million Series C fundraising round. Utility Global has developed a patented reactor that processes industrial gases into high-purity hydrogen and a concentrated CO2 stream without using electricity. This technology has potential for decarbonising steelmaking by replacing natural gas with hydrogen and simplifying carbon capture.

ArcelorMittal has also entered a collaboration agreement to accelerate the technology's commercial adoption, exploring opportunities to host pilot plants at its facilities. The XCarb® Innovation Fund, launched in 2021, has committed to investments in eight companies covering various decarbonisation technologies and is an anchor partner in Breakthrough Energy's Catalyst program with a $100 million commitment over five years.

ArcelorMittal hosted an investor day at AM/NS India's Hazira plant, showcasing the joint venture's progress and future plans. Key highlights include:

1. AM/NS India's strong performance since 2019 acquisition, with record production levels and competitive Ebitda.

2. $5.8 billion cash generation enabling significant growth investments.

3. Ongoing expansion project to increase steelmaking capacity from 9 to 15 million tonnes by 2026.

4. Long-term vision to reach 40 million tonnes annual capacity.

5. Plans to reduce carbon intensity by 20% by 2030 and develop renewable energy capacity.

India is projected to be the world's fastest-growing steel market, with domestic demand expected to grow at a CAGR of over 6% in the next decade.

ArcelorMittal has completed the acquisition of a 28.41% stake in Vallourec for approximately €955 million, purchasing 65,243,206 shares at €14.64 per share from Apollo Global Management funds. This strategic move strengthens ArcelorMittal's position in the high-quality tubular products market, with potential growth in clean energy sectors. Following the acquisition, ArcelorMittal executives will join Vallourec's board, including Genuino Magalhaes Christino as director, Keith Howell as director, and Aditya Mittal as observer.

CEO Aditya Mittal emphasized that this acquisition aligns with ArcelorMittal's growth strategy, complementing recent successful acquisitions in Brazil and the US. The company does not plan to launch a tender offer for Vallourec's remaining shares in the next six months.

ArcelorMittal, the world's leading integrated steel and mining company, has published its half-year report for the six-month period ended 30 June 2024. The report is available on the company's website, the Luxembourg Stock Exchange, and has been filed with the U.S. Securities and Exchange Commission. ArcelorMittal operates in 60 countries with primary steelmaking operations in 15 countries. In 2023, the company generated revenues of $68.3 billion, produced 58.1 million metric tonnes of crude steel and 42.0 million tonnes of iron ore. ArcelorMittal's purpose is to produce smarter steels for people and planet, focusing on innovative processes that reduce energy consumption and carbon emissions. The company is listed on stock exchanges in New York, Amsterdam, Paris, Luxembourg, and Spain.

ArcelorMittal (MT), the leading steel and mining company, reported Q2 2024 and H1 2024 results. Key points include:

Q2 2024: EBITDA of $1.9bn, net income of $0.5bn, steel shipments up 3.2% vs. Q1 2024. Cash flow reinvested in growth and returns to shareholders. Net debt at $5.2bn.

H1 2024: Sales fell 12.3% to $32.5bn, net income declined to $1.4bn. Operating income at $2.1bn, EBITDA at $3.8bn.

Strategic Developments: Projects in Brazil and India progressing, expected to boost EBITDA by $1.8bn by end of 2026. Acquisitions in Italy and Spain add $0.2bn to 2025 EBITDA potential.

Outlook: Market conditions expected to improve in 2H 2024. Capex for 2024 between $4.5bn-$5.0bn. Free cash flow outlook remains positive.

Key Financials: Q2 Sales $16.2bn, Operating Income $1.0bn, EPS $0.63. H1 Sales $32.5bn, Operating Income $2.1bn, EPS $1.80.