Luxembourg-headquartered steel manufacturer ArcelorMittal has announced the publication of its annual report for the year ended 31 December 2021.
Concerning operating results, ArcelorMittal ended 2021 with net debt of $4.0 billion in comparison to $6.4 billion at the end of 2020, returning to investment grade. In terms of gross debt, $8.4 billion was reported for 2021, significantly lower than the $12.3 billion at the end of 2020.
The company reported pension/OPEB $3.7 billion in December 2021 compared to $4.6 billion in December 2020, a 20% decline.
Net income rose to $2.2 billion in the 2021 financial year, which includes share of JV and associates, comparison to $0.2 billion in 2020, largely reflecting performance at AMNS India, AMNS Calvert and other investees.
ArcelorMittal had steel shipments of 62.9 million tonnes for the year ended 31 December 2021, compared to 69.1 million tonnes for the year ended 31 December 2020, representing a decrease of 9%. Sales for the year ended 31 December 2021 stood at $76.5 billion, up from $53.3 billion (up 43.5%) the year before.
The company recorded an operating income of $16.9 billion in 2021, compared to $2.1 billion the previous year. ArcelorMittal generated $6.6 billion in free cash flow (FCF) in 2021. The $6.6 billion FCF reflects $9.9 billion net cash provided by operating activities less capex of $3.0 billion less minority dividends of $0.3 billion.
The Company also returned $6.7 billion of capital to shareholders in 2021, reducing the outstanding fully diluted shares by 19%.
Regarding priorities and outlook, ArcelorMittal reported progress in planned carbon-dioxide emissions intensity reduction of its global production by 25% by 2030, including a 35% reduction in CO2 emissions intensity in Europe, with a net investment of $0.3 billion in 2022.
According to its report, ArcelorMittal expects strong EBITDA and FCF generation in 2022.
Aditya Mittal, ArcelorMittal Chief Executive Officer, said: "2021 was a strong year in which we accelerated progress on many fronts. The global economic rebound post initial COVID-19 restrictions being lifted supported buoyant demand in all markets delivering very high levels of profitability. This further strengthened our balance sheet and enabled the delivery of consistent returns for shareholders as well as targeted investment in our business. Recent investments, both organic and acquisitive, have long-term strategic value – with the Mexico hot strip mill set to ramp up this year, the construction of the Calvert EAF underway, and the AM/NS India joint venture performing well and poised to capture further opportunity in this fast-growing market".
The full annual report is available as a PDF at https://corporate-media.arcelormittal.com/media/yb1hdvlt/4q21-earnings-release-feb-9-final-v3.pdf.
