09/02/2024
Gerdau improves CDP score
Results were affected by excessive imports in the Brazilian market and a challenging global macroeconomic scenario
– Adjusted net income amounted to R$ 6.9 billion last year.
– Brazil’s steel imports increased 50% in 2023 vs. 2022, totaling 5 million tonnes. In December, penetration of imports in the domestic market reached 25.2%, according to Instituto Aço Brasil.
– Gerdau, reflecting the evolution in its sustainability journey, obtained the A- rating in the Climate Change module for the 2023 cycle of CDP, the global reference in evaluating sustainable actions, reaching the leadership level on the climate agenda.
– Gerdau ended 2023 with an injury frequency rate of 0.70, its lowest rate ever recorded, demonstrating its commitment to the health and safety of people.
Gerdau, Brazil’s largest steel producer, ended 2023 with adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of R$ 13.5 billion and adjusted EBITDA margin of 19.6%. Adjusted net income totaled R$ 6.9 billion in 2023, while net sales amounted to R$ 68.9 billion and steel shipments reached 11.3 million tonnes.
In the fourth quarter of 2023, the Company posted adjusted EBITDA of R$ 2.0 billion, representing adjusted EBITDA margin of 13.9%. Adjusted net income totaled R$ 732.2 million in 4Q23, net sales amounted to R$ 14.7 billion and steel shipments reached 2.7 million tonnes.
“Gerdau delivered adjusted EBITDA of R$ 13.5 billion in 2023, another year of healthy balance sheet and strong financial results, mainly driven by the performance of North America. We remain focused on a new cycle of sustainable development, on the growth and competitiveness of assets with greater potential for creating value in the long term for our clients and other stakeholders,” said Gustavo Werneck, CEO of Gerdau.
Capex reaches R$ 5.7 billion in 2023
In 2023, Gerdau invested R$ 5.7 billion, of which R$ 3.2 billion went to maintenance and R$ 2.5 billion to expansion projects and technological upgrades. Of the total invested in 2023, R$ 1.1 billion was allocated to expanding the forest assets, as well as upgrading and streamlining environmental controls and technologies, all of which resulted in energy efficiency and lower greenhouse gas emissions.
For 2024, the Company’s new investment plan is estimated at R$ 6 billion, including Capex on maintenance, expansion and technological modernization of the operations. Of the total planned for this year, investments with environmental returns surpass R$790 million.
“We have a solid balance sheet, with low leverage, built over the last few years through rigorous discipline in capital allocation. We are alert to future scenarios and, if necessary, will revise our Strategic Investment plan accordingly,” said Rafael Japur, CFO of Gerdau.
Sustainability
Gerdau, Brazil’s largest steel producer, has achieved the A- rating in Climate Change in the 2023 cycle of CDP, the global reference in evaluating sustainable actions. With this rating, the company has achieved the leadership level in the topic, surpassing both the global average and that of the steel and metal industry, underscoring its commitment to transparency and to reducing greenhouse gas emissions (GHG).
Among the actions reported to the CDP is the use of biocoke, a renewable energy source and an alternative to metallurgical coal, at the steel producing unit located in Ouro Branco, Minas Gerais, and the development of the GHG calculator, applicable to investment projects of over US$ 1.5 million. Moreover, Gerdau retained its B- rating in Water Security in 2023, also above the global average and that of the steel and metal industry.
Also, Gerdau selected, for the third time, to the Carbon Efficient Index (ICO2) of the São Paulo Stock Exchange (B3), which is formed by publicly traded companies committed to efficient and transparent management of their greenhouse gas emissions.
Gerdau’s continued presence in the index is a recognition of the efforts and initiatives of the sustainability strategy and its commitments to reduce carbon emissions in the short and long terms. It currently boasts one of the industry’s lowest average greenhouse gas emissions (CO₂e), of 0.86t/CO₂e per tonne of steel. This represents about half of the global steel industry average of 1.91 tCO2e/t of steel, per data disclosed by the World Steel Association (worldsteel).
Launched in 2010 by B3 in partnership with the Brazilian Social and Economic Development Bank (BNDES), ICO2 aims to encourage companies with the most traded shares on B3 to monitor and report their greenhouse gas emissions. Inclusion in the index portfolio, which is updated every four months and considers inclusion in the IBrX 100 index, requires companies to publish an annual report of their emissions.
Dividends will be paid on March 12 and 13
Gerdau S.A. and Metalúrgica Gerdau S.A. will pay dividends on March 12 and 13, 2024, respectively. Gerdau S.A. will pay R$ 175 million (equivalent to R$ 0.10 per share) and Metalúrgica Gerdau S.A. will pay R$ 52 million (equivalent to R$ 0.05 per share), in both cases to shareholders of record on March 1, 2024. In 2023, R$ 2.6 billion (R$ 1.51 per share) was paid to shareholders of Gerdau S.A. and R$ 1.6 billion (R$ 1.54 per share) to shareholders of Metalúrgica Gerdau S.A., representing total earnings on the year’s adjusted net income of 43.7% and 76.8%, respectively.
