Brazil: CSN Reports R$ 403 Million Profit in 2023, Significantly Improves Fourth Quarter Performance

CSN (Companhia Siderúrgica Nacional) achieved a net profit of R$ 403 million in 2023, overturning previous losses through substantial gains in the fourth quarter, highlighting strength in mining and steel sectors.

Brazil: CSN Reports R$ 403 Million Profit in 2023, Significantly Improves Fourth Quarter Performance
Photo: Paulo Dimas

In 2023, CSN, one of Brazil's leading conglomerates in the steel, mining, and cement sectors, reported a notable turnaround with a net profit of R$ 403 million for the year. This outcome was predominantly driven by a robust performance in the fourth quarter, where the company recorded a profit of R$ 851 million, counterbalancing losses from the earlier part of the year. The initial three quarters had seen a cumulative loss of approximately R$ 449 million, underscoring the significant recovery in the latter part of the year.

The company's diverse portfolio saw varied contributions to its financial health, with the steel sector accounting for 47% of revenue and 9% of cash generation. Mining operations were particularly lucrative, contributing 42% of revenue and 76% of cash generation, while the cement production segment added 9% to revenue and 7% to cash generation. Energy generation and logistics services also played roles in the company's overall performance.

In the steel sector, CSN witnessed a 81.5% increase in EBITDA in the fourth quarter, driven by improved production capacity and increased commercial activity, particularly in international markets. The company also benefited from a decrease in production costs, aiming for further reductions in the coming year.

Mining remained a key strength for CSN, with production volumes exceeding targets for 2023. The sector's success is attributed to favorable pricing and operational efficiencies, though it faces potential volatility from changes in China's economic policies.

The cement division of CSN also showed positive signs, with EBITDA margins reaching 24.1% in the fourth quarter, indicating a potential for further growth and market capitalization moves.

Source: Diário do Vale