ArcelorMittal S.A (MT) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 28, 2022 9:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Daniel Fairclough

Welcome to ArcelorMittal's Second Quarter and First Half 2022 Analyst and Investor Call. This is Daniel Fairclough from the ArcelorMittal Investor Relations team. I'm joined on this call by our CEO, Aditya Mittal; and our CFO, Genuino Christino.

Before I hand over to Aditya, I would like to mention a few housekeeping items. Firstly, I want to refer everyone to the disclaimers on Slide 2 of the results presentation that we published on our website this morning. I'd also like to remind everybody that this call is being recorded and is scheduled to last up to 45 minutes. [Operator Instructions]

And with that, I would like to hand over to Aditya for some opening remarks.

Aditya Mittal

Thank you, Daniel. Good afternoon and good morning, everyone, and welcome to today's call. As you have read, we have reported very strong results for the first six months of the year, $8 billion net income and earnings per share of approximately $8.5. These numbers reflect the hard work and commitment of everyone at ArcelorMittal. Together, we are taking big steps to strengthen, grow and develop our business to position ArcelorMittal for its future as a leader in the decarbonized world.

With this in mind, I'd like to update you on the acquisition of the Texas HBI plant we announced in April. The acquisition is now complete. The plant is achieving its rated capacity for the first time. EBITDA is run rating at $200 million, giving us confidence in our normalized projections of $130 million. The plant is very strategic for us for two reasons: First, it will provide a source of low-carbon high-quality metallics from a region that offers highly competitive energy and ultimately, competitive hydrogen. Secondly, this plant will supply the EF capacity we're building at Calvert and is a key component of our 12 million ton low CO2 highest-quality NAFTA sheet franchise.

Our agreed acquisition of CSP in Brazil is similarly exciting. It's a world-class, well-invested modern facility connected to a deepwater port, plus we have important synergies. CSP is also an asset with fantastic potential. Like Texas for the U.S., the state of Serra in Northeastern Brazil is a focus for the development of renewable power and hydrogen in Brazil. It gets the most sun and has plentiful wind, both on and offshore. Massive investment has been committed to this region. So looking forward, I see real potential for CSP to be a globally competitive, low CO2 steelmaking hub.