Ljubljana, 30 April (STA) - The steel group SIJ generated EUR 1.1 billion in sales revenue last year, which is 5.3% more than in 2023, while its loss increased by 146% to EUR 46.4 million, shows the consolidated data released on Wednesday. The group says that its business was burdened by geopolitical tensions, high energy costs and the new network fee charging model.
Last year was one of the most difficult years in the history of the European steel industry, the SIJ management said in a press release as it announced the results.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped from EUR 56.6 million in 2023 to EUR 48.2 million last year.
As SIJ explained, in addition to the lower EBITDA, the increased loss in 2024 was also a result of EUR 6.7 million higher financing costs and EUR 10.2 million higher taxes related to a temporary increase in corporate income tax in Slovenia.
SIJ chairman Andrey Zubitskiy said in the release that the results indicate the challenges faced by European steel makers, especially in the second half of last year.
He added that the group recorded a negative result "despite higher sales revenue, a return of production volumes to previous years' levels, and a number of activities to optimise our operations."
Steel production in the SIJ group increased by 20.6% to 456,700 tonnes last year, with Zubitskiy noting that they remain among the three largest producers of stainless steel quarto plates and the fourth largest producer of tool steel in the EU.
Regarding plans for 2025, he said that the group will continue to focus on industries that consume the most demanding types of steel.
The group notes that exports have remained strong despite the shifting geopolitical landscape, reaching 86.9% of total sales, which makes SIJ one of Slovenia's largest export-oriented companies.
Germany and Italy remain its biggest markets, while exports to the US also increased from 8.5% to 9.9% of total exports, the release says, noting that the US remains a structurally strong market poised for long-term growth.
While EUR 66.1 million was earmarked for investments in 2024, only the most essential investments have been planned for this year.
In the first quarter of 2025, the SIJ group generated EUR 271 million in sales revenue and produced 93.6 thousand tonnes of steel. EBITDA amounted to EUR 14.3 million, while the loss stood at EUR 7.5 million.
The management says that these results are in line with first-quarter projections, as trends in steel-consuming industries have shown a slight upturn, reflected in an increase in orders during the first quarter.
