Demand recovery, higher prices give Cognor record earnings

Cognor benefited from the continued steel demand recovery and still higher prices in the second quarter. Revenue surged 57% on-year in Q2 to PLN 716.1 million ($184.5m), while net profit soared 260% to a new quarterly record of PLN 78.8m.

In the first half of 2021 the Polish steelmaker’s overall sales rose 4.3% on-year to 432,972 tonnes. Finished product sales increased 4% to 271,329t but semi-finished steel deliveries fell 17% to 79,807t. Scrap sales rose 21% to 81,836t.

H1 revenue surged 42% to PLN 1.3 billion and net profit ballooned 406% to PLN 124.7m, Kallanish notes.

Spreads widened thanks to the faster increase in steel prices then scrap prices, while costs reduced due to the lower consumption of some input materials following the completion of investments to increase efficiency.

The firm’s Huta Stali Jakosciowych (HSJ) unit saw exports comprise 56.5% of H1 sales, while at Ferrostal Labedy they accounted for only 11.4%. Buyers Wobi-Stal and Sambud-2 accounted for over 10% each of Ferrostal Labedy’s sales.

Adam Smith Germany