Stalbrop estimates that it has increased its net profit by more than 300% in Q1. Thanks to rising steel prices

PLN estimates unit sales revenue at 198.4 million in the first quarter of 2021, an increase of 12.3% y / y on Stolphrofil. The company estimates that net profit increased by 306% during this period. PLN to 12.7 million and operating profit to 551 percent. PLN up to 16.1 million – Stallbroop said in a statement. According to the company, the results achieved have been affected by the increase in steel market prices observed since December, which is unprecedented in recent years.

Stalfrofil said it is difficult to estimate the lifespan of the price trend that developed in the market in the first quarter of 2021 and maintain the results achieved because of the magnitude of steel production costs or the risk of changes in the current relationship. Between supply and demand for steel products.

“The main parameter that affects the price of steel products is the current demand for steel and the amount of its production costs, including the price of basic raw materials: iron ore, coking coal and scrap, as well as energy costs and CO2 emissions. The production of steel or the current relationship between supply and demand for steel products. It could be an obstacle to maintaining the dynamics of commodity prices, which would be a continuation of the company’s extraordinary results in the second half of 2021. “

He added that the company has the opportunity to finance the increased demand for working capital as a result of rising prices of steel products.

According to the company, the steel price index released by the Polish Union of Steel dealers in the last week of March 2021 indicates a significant increase in the average price of selected basic steel products from the company’s trade offer, namely: HEB 200 profiles 40%, segments curved S235JRH 58%. And hot-rolled sheets S235JRH 70 percent.

The estimated results take into account the writings and rules, including provisions for low-turnover products and provisions for risks related to the implementation of contracts for the construction of gas pipelines, which are carried out by the Stolprobil branch in Jabras.

The report for the first quarter of 2021 is scheduled to be released on May 28 on Stolprob. (BAP Business)

Prayer / Ana /