Companhia Siderúrgica Nacional Q2 FY2024 earnings call

Highlights: Better operations across segments, EBITDA growth, improved mining production and cost, steel recovery, cement records, logistic growth, ESG achievements (decarbonization, sustainability index, safety, diversity). Steering Points: Efforts to resume profitability, efficiency gains in mining, steel investments, cement synergy capture, logistic growth, ESG progress.

Mining: Best owned production since 2016, highest in history. Production volumes were record, cost per ton reduced from $25 to $21.2. EBITDA was R$1.6 million with a 48% margin. Steel: Best commercial quarter since Q2 2022, sales volume above 1.1 million tons, EBITDA grew almost 40%, average domestic price up 1.4%. Cement: Record production and sales (3.6 million tons), net revenue up 15%, EBITDA margin 28% in H1. Logistic: EBITDA up 9.2% q-o-q, strong seasonality and product diversification.

Management expects continued EBITDA growth, deleveraging through asset sales and operational improvements, steel margin recovery, cement margin expansion, and continued ESG progress.

Factors like exchange rate fluctuations, protectionist measures, competitive pressures, impact of extreme weather on energy segment.

Q: Daniel Sasson asked about deleveraging drivers, asset sales, and cement acquisition impact.

A: Antonio Marco Campos Rabello discussed deleveraging through operations, asset sales plans, and cautiousness with cement acquisition due to group leverage.

Q: Caio Greiner asked about Usiminas shares and steel margin dynamics.

A: Luis Martinez spoke about Usiminas share sale timeline and steel margin recovery through operational efficiency.

Q: Marcio Farid asked about leverage expectations and industry measures.

A: Antonio Marco Campos Rabello and Luis Martinez discussed leverage goals and ongoing industry measures.

Q: Caio Ribeiro asked about IPO plans and export opportunities.

A: Antonio Marco Campos Rabello talked about IPO possibilities and export challenges.

Q: Ricardo Monegaglia asked about cement commercial success and internationalization.

A: Antonio Marco Campos Rabello and Edvaldo Rabelo discussed cement commercial strategy and internationalization plans.

Q: Unidentified Analyst asked about Lafarge synergies and cement asset utilization.

A: Edvaldo Rabelo and Luis Martinez spoke about Lafarge synergies and asset utilization.

Q: Unidentified Analyst asked about InterCement exclusivity.

A: Antonio Marco Campos Rabello said CSN no longer has exclusivity but continues negotiations.