MADRID (Reuters) - Spanish steel maker Acerinox said its net profit jumped more than 11-fold in 2021 to a record 572 million euros ($638 million) as rising demand pushed steel prices through the roof.
The company said its net profit in the fourth quarter soared almost ten times to 198 million euros, while earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled to 318 million euros.
The company attributed the hefty profits to a price increase across the industry, a situation that is likely to continue in the first half of this year, it said.
"The low levels of inventories, the improvement of prices and the regionalisation of the stainless steel market allow us to be optimistic about the first half of this year," Acerinox said in a statement.
EBITDA will rise in the first quarter of this year from the fourth quarter of last year, despite increases of production costs, mainly energy, Acerinox said.
The steel maker maintained the dividend at 0.50 euros per share and said it would buy back about 4% of its shares.
Acerinox added its exposition to the region of Russia and Ukraine is limited to 0.5% of sales.
($1 = 0.8959 euros)