OM (OMH) H1 2024 earnings summary

Executive summary

• Revenue for 1H 2024 was US$308.4 million, down 4% year-over-year due to lower ore volumes and reduced average selling prices amid weaker steel demand and higher energy costs.

• EBITDA for 1H 2024 was US$46.6 million, compared to US$56.9 million in 1H 2023.

• Profit attributable to owners was US$12.9 million, down from US$19.3 million in 1H 2023, reflecting weaker global economic activity and higher interest rates.

• Cash flow from operations was strong at US$69.4 million, a significant improvement from negative US$3.6 million in 1H 2023.

• Production volumes remained within guidance, with a continued focus on cost management and operational efficiency.

Financial highlights

• Revenue decreased 4% year-over-year to US$308.4 million, with gross profit margin down to 19% from 21% due to lower alloy prices and reduced manganese ore trading.

• Adjusted EBITDA declined 18.1% year-over-year to US$46.6 million.

• Profit per share was 1.67 US cents, down from 2.59 US cents in 1H 2023.

• Loan repayments totaled US$54.4 million, up from US$18.6 million in 1H 2023.

• Cash and cash equivalents stood at US$66.5 million as of June 2024.

Outlook and guidance

• Production guidance remains on track, with FeSi production expected at 53-63 kmt and Mn Alloy at 151-171 kmt for FY2024.

• Ultra Fines Plant restart targeted for Q4 2024.

• CapEx will be limited through 2026 as the company focuses on cash management and optimal capital structure.

• No interim dividend declared for 1H 2024.

• Carbon pricing and emissions reduction are key focus areas for future planning.