The metallurgical and mining group Eramet on Tuesday published a net loss of 675 million euros in 2020, largely linked to asset impairments in the first half, while activity rebounded sharply in the second half.
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Over the year, turnover recorded a limited decline of 3%, to 3.55 billion euros.
The strong growth in manganese ore sales volumes (+ 37%) and nickel ore exports (+ 55%) largely offset the fall in manganese prices and the drop in activity in aeronautics for the subsidiary of Aubert and Duval alloys.
Gross operating profit (EBITDA), a benchmark indicator for Eramet, fell 37% to € 398 million, but the second half (EUR 278 million) more than doubled compared to the first (EUR 120 million) .
The CEO of the group, Christel Bories, quoted in the group's statement, insisted on
"remarkable successes in (the) mining activities (...) despite the disruptions"
.
The production of manganese ore in Gabon notably increased by 22% to 5.8 million tonnes (Mt) and nickel ore exports in New Caledonia by 55% to 2.5 Mt. In Indonesia, the mine of Weda Bay nickel, started at the end of 2019, produced nearly 3.4 Mt of ore in 2020. Christel Bories says that she is approaching 2021
"with confidence and a certain ambition"
, given the expected development of the energy transition and vehicle markets. electricity and construction, which will benefit from the economic rebound and stimulus plans.
Steel production growth expected for 2021
Eramet is counting for 2021 on growth in the production of stainless steel, a major outlet for nickel, after a significant decline in 2020, and on a recovery in demand for carbon steel in 2021, supported by China, for the manganese sector .
The group is targeting an EBITDA of around 600 million euros for 2021, with manganese ore production of 7 Mt and SLN's nickel ore exports of more than 3.5 Mt.
In New Caledonia, a conciliation procedure is underway to
"quickly obtain the commitment of all" in
order to carry out the rescue plan of the SLN which
"has real potential"
, insisted Christel Bories.
In the High Performance Alloys division, the possible sale of the Aubert and Duval subsidiary remains under discussion, she said, without mentioning possible buyers.
The goal:
"to find the best solution to bring out a satisfactory offer"
which will
"ensure the future of this strategic activity for the sector"
and
"the future of employees"
.
"We will not sell off this asset,"
she said.
Aubert et Duval's turnover fell 16% in 2020 to 539 million euros, weighed down by the collapse of the aeronautics sector.
But the cost-saving measures made it possible to restore free cash flow to equilibrium in the second half of the year.