In This Article:
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Operating Result: SEK7.8 billion for the full year 2024, lower than the previous year.
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Net Cash Position: Maintained at a similar level to the previous year, indicating a strong balance sheet.
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Q4 Revenue: SEK23.6 billion, 3% lower than the previous quarter and 11% lower than the previous year.
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Q4 EBITDA: SEK1.6 billion, lower than Q3's SEK2.3 billion and the previous year's SEK3.4 billion.
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Q4 Shipments: 1,448 kilotons, 9 kilotons lower than the previous quarter and 43 kilotons lower than the previous year.
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Dividend Proposal: SEK2.6 per share, totaling SEK2.6 billion, to be proposed at the AGM.
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Net Debt/Equity Ratio: Minus 25%, exceeding the financial target of plus/minus 20.
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2025 CapEx Guidance: Maintenance CapEx at SEK3 billion; strategic CapEx increasing due to Lulo investment.
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Raw Material Costs: Expected to be stable or somewhat higher in Q1 2025.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SSAB AB (SSAAF) maintained a strong market position in special and premium steels, with record sales to the automotive industry.
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The company is leading the green steel transition, with significant customer interest in green steel for electric vehicles.
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SSAB AB (SSAAF) achieved a strong safety performance, ending the year with a safety level of 0.75, reflecting a robust safety culture.
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The company has a strong balance sheet, maintaining a stable net cash position similar to the previous year.
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Strategic investments in Lule and Oxelosund are expected to significantly reduce CO2 emissions and reposition SSAB Europe as a premium steel producer.
Negative Points
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Operating results for 2024 were lower than the previous year, primarily due to price decreases in the American market.
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Q4 volumes in special steels were lower than expected, partly due to shipment issues and maintenance delays.
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The construction and automotive segments faced weaker demand, impacting overall sales.
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The company is facing ongoing strikes in Finland, which could negatively impact Q1 earnings.
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The market environment remains challenging, with sensitivity to supply and demand fluctuations, particularly in the Americas.
Q & A Highlights
Q: Could you provide an update on the strike situation in Finland and its potential impact on Q1 earnings? A: The strike in Finland is ongoing and is planned to last six days. We are trying to minimize its impact, similar to previous strike incidents. However, it is likely to have some effect on Q1 earnings, comparable to past strikes.