Erdemir announced its first quarter balance sheet

Erdemir made a net profit of TL 90 million in the first quarter of 2023, slightly above the market expectation of TL 22 million Erdemir made a net profit of TL 90 million in the first quarter of 2023. While Erdemir made a net profit of TL 3.175 billion in the last quarter of last year, net profit in 2022 had been TL 18.0 billion. Net profit was TL 5.6 billion in the same quarter of the previous year. EBITDA was realized as TL 1,389 million, above the expectation of TL 456 million, while total turnover in the first quarter was TL 26.3 billion, above the expectation of TL 24.7 billion. In dollar terms, Erdemir made a net profit of $ 5 million in the first quarter of 2023. The company made a profit of $ 405 million in the same period of the previous year and $ 207 million in the previous quarter. Thus, the company's net profit margin, which was 11.7 percent in the last quarter of 2022, decreased to 0.3 in this quarter. EBITDA margin, on the other hand, decreased from 4.5 percent in the last quarter to 1.6 percent in the first quarter. Erdemir's production and sales volumes declined The company achieved a total of 1 billion 394 million dollars of net sales revenue in the first quarter of the year, 1 billion 243 million dollars of which was domestic and 151 million dollars of which was international. There was a decline in the company's net sales revenue on a quarterly basis. Erdemir had achieved sales of 1 billion 764 million dollars in the last quarter of 2022. The distribution of the company's sales, which produced 1.40 million tons in the first quarter on a quantitative basis, was as follows; 937 million tons of hot products, 405 thousand tons of cold products and 60 thousand tons of long products. On the export side, Erdemir's share in total sales was 8.1 percent in the last quarter. The company, which exported 126 thousand tons, had exports of 257 thousand tons in the previous quarter. The company's investment expenditures amounted to 161 million dollars in the first quarter of this year. Total investment expenditures had increased from 434 million dollars to 723 million dollars in 2022. Earthquake impact on Erdemir and İsdemir While Ereğli Demir Çelik and its sister company İsdemir produced 7.8 million tons of crude steel in 2022, the total crude steel production amount in the first three months of 2023 was 1.2 million tons due to the suspension of production until the completion of the due diligence studies at İsdemir facilities due to the earthquake on February 6, 2023. In the first quarter of this year, crude steel production was 423 thousand tons at İskenderun facilities, and 771 thousand tons at Ereğli facilities. Following the earthquake, production was suspended at İsdemir, a subsidiary of the company, until the status assessment studies were completed. It was assessed that the damages that would occur due to the earthquake were covered by insurance and that these damages would not significantly affect the company's financial statements. The Group's capacity utilization rates decreased compared to previous periods due to the suspension of production at İsdemir facilities. While the capacity utilization rate in liquid steel was 84 percent in the same quarter of the previous year, this rate decreased to 51 percent in this quarter. In the same period, the capacity utilization rate in crude steel also decreased from 83 percent to 50 percent. The Group's total flat product sales in the 2023 three-month period were 1.5 million tons, and long product sales were 76 thousand tons.