The net profit of CSN (CSNA3) totaled BRL 369 million in the second quarter of 2022, down 93% compared to the same period last year, shows a document sent to the market this Monday (15).
The number was well below the market consensus gathered by Bloomeberg, which had expected a profit of R$1.4 billion.
Ebitda, which measures operating income, adjusted to R$3.2 billion, dropped 60%, while the Ebitda margin dropped 23.3 percentage points.
Analysts, according to Refinitiv, expected R$ 3.25 billion for the line.
In addition to the pressure of the fall in the price of iron ore, profit was hit by an increase in the negative financial result, which went from 340 million to 890 million.
Total net revenue amounted to R$10 billion, down 31%.
“This result is mainly a consequence of the negative adjustments to the Platts price in the mining segment, which ended up offsetting the higher sales volume seen in the period”, he justifies.
The company ended June with leverage of 1.31x, up from the 0.89x level at the end of the first quarter and the 0.6x level at the second quarter of 2021.
The decrease in revenue with greater cost pressure negatively impacted the gross margin, which reached 28% in the
second quarter, down 9.6 percentage points from the first quarter.
Selling, general and administrative expenses totaled R$651 million, up 10% over 1Q22, as a result of the higher commercial activity observed in the period for the mining and cement segments, generating higher freight expenses, further enhanced by the increase in of route C3 in the quarter.
Review of projections
The company updated forecasts for mining this year.
The expected cash cost of production rose from 18 dollars per ton to the range of 20 to 22 dollars. The company estimates to produce between 36 million and 38 million tons of iron ore in 2022.
Meanwhile, in the steel industry, Ebitda fell from 2.7 billion to 1.9 billion reais, with steel sales falling 17%, to 1 million tons.
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