Stalprofil’s consolidated revenue fell 10% on-year in the third quarter to PLN 370 million ($90.9m) due to a drop in the number of infrastructure segment contract awards.
However, steel trading segment revenue surged 75% thanks to continued strong steel demand and elevated prices, albeit with a slight correction. Consolidated net profit also soared almost seven-fold to PLN 26.9m.
The end of the price uptrend in the second half of Q3 is seeing the gradual return of margins to levels typical for the steel distribution sector, Stalprofil says. The reduced infrastructure segment revenue is due to a lack of orders from main customer Gaz-System. The firm sees deliveries to the Polish gas pipeline operator resuming in the coming months.
Consolidated revenue in the nine months through September thus fell 2% to PLN 1.14 billion but net profit attributable to majority shareholders soared over 470% to PLN 87.2m.
In the first half of 2021, Stalprofil saw steel product sales rise 15% on-year to 94,916 tonnes, but export sales revenue almost halved amid competition and influx of cheap steel into the EU from the Far East and CIS (see Kallanish passim).
Adam Smith Germany