The second largest Australian steelmaker OneSteel has announced its financial results for the financial year 2010-2011 (FY 2010-11) ended on June 30.
OneSteel posted a sales revenue of A$7.13 billion ($7.47 billion) in FY 2010-11, up 15 percent compared with a net profit of A$6.2 billion in FY 2009-10. When the same periods are compared, the company's net profit fell 11 percent from A$258 million to A$230 million ($241 million). OneSteel's earnings before interest, taxes, depreciation and amortization (EBITDA) of A$642 million ($673 million) in FY 2010-11 was four percent higher than the figure of A$618 million in the corresponding period of the previous financial year. The company's net debt increased from A$964 million in FY 2009-10 to A$1.7 billion ($1.8 billion) in FY 2010-11.
Meanwhile, in the period in question OneSteel achieved an iron ore sales volume of six million metric tons. Iron ore sales are expected to increase to approximately 9-10 million mt per year following announced port expansion at Whyalla and agreement to acquire WPG Resources' iron ore assets.
Company chairman Peter Smedley commented on the operational results of the company, "In August, the company announced its intention to expand iron ore sales to 9-10 million tonnes per annum facilitated through an estimated $200 million expansion of the company's port facilities at Whyalla, underpinned by an agreement with WPG Resources to purchase its iron ore assets for an estimated $346 million. The acquisition is expected to be completed in October and will allow OneSteel to bring high quality ore to the market quickly, taking advantage of favourable market conditions for iron ore."
WPG Resources' shareholders have agreed to sell a collection of iron ore assets to the steelmaker. Approval for the $346 million sale was given at a meeting of WPG shareholders on October 4. The OneSteel transaction is expected to occur on October 6.
Tags: iron ore , Australia , Oceania , fin. Reports , M&A , mining
If you believe an article violates your rights or the rights of others, please contact us.