SAULT STE. MARIE, Ont. — Algoma Steel Group Inc. is paying its first quarterly dividend as it reported that revenues surged 48 per cent in its latest quarter to propel the company to record results for its fiscal year.
The Sault Ste. Marie, Ont., steelmaker says it will pay five cents US per share as revenues in the fourth quarter rose to $941.8 million from $638.5 million a year. Shipments decreased 12 per cent to 547,000 tons but steel prices soared more than 70 per cent to US$1,608 per ton.
That contributed to its net profit more than doubling to $242.9 million from $100.1 million in the fourth quarter of 2021.
Earnings per share gains for the three months ended March 31 were more modest, coming in at $1.45 per diluted share, up from $1.40 per share in the prior year.
For the full-year, it earned $857.7 million or $7.75 per share, up from a loss of $76.1 million or $1.06 per share in 2021.
Revenues more than doubled to $3.81 billion from $1.79 billion.
“Our strong results for the fiscal fourth quarter capped off an incredible year at Algoma, one that produced record revenues, profitability and cash flows,” new CEO Michael Garcia said in a news release.
Algoma also announced a US$400 million substantial issuer bid to repurchase up to 7.4 million of its shares, which would represent about one-third of its market capitalization.