ArcelorMittal South Africa average capacity utilisation decreased from 59% in the 2021 comparable period to 42% in 2022 and should reach at 76% after the Newcastle blast furnace mid-life campaign restoration. The reduction in capacity utilisation reflects the impact of the delivery complexities associated with rail service unabailability, labour disruptions and electricity loadshedding as described earlier.
Crude steel production decreased by 30%, or 441 000 tonnes, from 1,5 million tonnes to 1,1 million tonnes in 2022. Crude steel production decreased by 31% to 1,1 million tonnes compared to 1,5 million tonnes in the immediately preceding six months.
The R464 million, three-month Newcastle blast furnace mid-life campaign restoration is rapidly approaching completion with more than 40 000 hours worked without a single lost-time injury. The major benefits of the project include plant life extension, improved reliability and cost competitiveness, lower energy consumption and a reduced carbon footprint. Some 50 tonnes of steel, 5 382 carbon blocks and 14 047 refractory bricks have been consumed while 1 030 temporary job opportunities were created, supported by 28 contractor companies.
ArcelorMittal South Africa reported an EBITDA of R3 591 million against R3 218 million in the comparative period, while its operating profit increased from R2 945 million to R3 235 million. The headline earnings of R3 025 million rose from R2 482 million, amounting to a 271 cents per share profit against 223 cents for the 2021 comparative period.
EBITDA decreased by 33% to R3 591 million compared to R5 351 million in the immediately preceding six months.
Revenue increased by 19% to R22 176 million due to a 30% rise in net realised steel sales prices, despite an 8% decrease in total steel sales volumes. Revenue increased by 5% to R22 176 million in the first half of 2022 compared to R21 112 million in the immediately preceding six months.