Analysts’ assessment was released in a report this Tuesday (August 13); mining was the positive highlight
Despite the loss reported by CSN (Companhia Siderúrgica Nacional), XP Investimentos considered that the company’s data shows improvements at all levels, according to report released this Tuesday (13.Aug.2024).
The indicators were driven by the mining, steel and cement divisions. Mining was the positive highlight, with better than expected sales volume and lower costs, with “greater dilution of fixed costs, lower railway costs and devaluation of the real”said analysts Lucas Laghi, Guilherme Nippes and Fernanda Urbano.
In the steel industry, analysts praised the improved sales mix, with higher volumes in the domestic market, even though prices were not favorable. Record sales volume in the cement division was also one of the points cited as positive, with cost control.
On the other hand, with the exchange rate variation, the company’s leverage levels were affected and are a factor of concern that should be monitored in CSN’s thesis. The ratio of net debt to adjusted EBITDA was 3.36x, compared to 3.13x in the 1st quarter and 2.78x in the 2nd quarter of 2023.
In addition, XP has other reservations that reinforce the neutral indication on the paper: “Expectations of a slowdown in mining operations figures, reflecting lower iron ore prices; and still-pressured price performance in the steel division amid tougher competition from imported products”.
CSN’s net revenue totaled R$10.881.7 billion in the 2nd quarter of 2024, a negative annual variation of 1%, but a quarterly increase of 12%. Adjusted EBITDA increased on both bases, with growth of 17% compared to the second quarter of 2023 and a sequential increase of 35%, totaling R$2.645 billion.
CSN reported a net loss of R$222.6 million in the 2nd quarter, reversing a profit of R$283 million recorded in the same period last year. Even so, there was an improvement of 53.6% in relation to the negative result of the previous quarter.
Among the reasons, according to CSN, would be “the increase in financial expenses and the higher incidence of taxes related to the performance of subsidiaries, directly impacting the Income Tax and Social Contribution line and offsetting the operational improvement seen in the period”.
Adjusted cash flow was negative by R$1.164 billion, due to the consumption of working capital, higher volume of investments and the impact of exchange rate variation on the financial result, which more than offset the stronger operating result.
With information from Investing Brazil.
#loss #CSN #presented #results