Posted on 02 Apr 2025
British Steel has reported a large financial loss for 2023 in its most recent filings with Companies House, Kallanish learns.
It notes trading conditions in 2023 were challenging amid falling commodity and steel prices impacting margins, while energy prices remained above historic levels.
Trading performance deteriorated to a total loss excluding impairments of £191.6m ($248m), against a loss of £152.3m in 2022. The company accepted a requirement for impairments to non-current assessments of £32m in 2023, and £124.7m in 2022. It thereby recognised the long-term embedding of high energy prices and the anticipated retirement of existing primary steelmaking facilities.
Its result for 2023 after taxation and exceptional items was a loss of £227m, versus £367m in 2022. It also noted that losses were continuing into 2024.
It reports operational performance in 2023 was significantly impacted by poor stability of its blast furnace operations with extended outages resulting in low production and sales volumes. These periods of single BF operation, combined with the inability to implement reductions in fixed costs, caused deterioration in trading Ebitda.
The firm retired its ageing Queen Victoria blast furnace in December 2023, with its Queen Bess furnace commencing production in January 2024, returning the business to a two-furnace blast operation.
For 2023, liquid steel production was at 1.7 million tonnes, down from 2mt in 2022.
However, furnace issues continued in 2024, with Kallanish reporting in January this year that its Queen Anne furnace was back in production after an outage which began in summer 2024.
Revenue for 2023 decreased to £1.2 billion, down from £1.7 billion in 2022, reflecting lower volumes.
The firm notes the risk of imports in its core markets against a backdrop of long-term declining demand. It adds that safeguards are based on historical import levels during times when demand was higher. Increasing raw materials costs and competing materials are also challenging the long-term competitiveness of its products.
The new filings come just days after the company said it was losing around £700,000 a day and was starting consultations with its workers to close its blast furnaces, after declining a government funding offer.
The company reported its 2022 results in September 2024, showing a before tax loss of £408.4m ($528m), which deepened from a £49.5m loss in 2021.
Source:Kallanish
