Russia-linked Slovenian steelmaker bleeds millions
Slovenian Steel Group (SIJ), the country's largest steel producer, saw its loss balloon by 146% to over €46 million last year, which the company's management blames on geopolitical tensions, high energy costs and the new network fee charging model in the country.
Last year was one of the most difficult years in the history of the European steel industry, the SIJ management said as it released consolidated business results, CE Report quotes The Slovenia Times.
The group, which has not been in majority Slovenian ownership since 2007, generated €1.1 billion in sales revenue last year, 5% more than in 2023.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped from almost €57 million in 2023 to €48 million last year.
In addition to the lower EBITDA, the increased loss was also a result of €6.7 million higher financing costs and €10 million higher taxes related to a temporary increase in corporate income tax in Slovenia.
SIJ chairman Andrey Zubitskiy said the 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 output increased by more than fifth to 456,700 tonnes, 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.
The group will continue to focus on industries that consume the most demanding types of steel.
It says its exports have remained strong despite the shifting geopolitical landscape, reaching 87% 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 US is steel seen as a structurally strong market poised for long-term growth.
After €66 million was earmarked for capital expenditure in 2024, only the most essential investments have been planned for this year.
In the first quarter of 2025, the group posted a loss of €7.5 million on €271 million in sales revenue with EBITDA at €14 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.
SIJ is 72.2% owned by Dilon, a company indirectly in Russian ownership through the Zubitskiy family. The Slovenian state owns a controlling stake of 25% plus one share through Slovenian Sovereign Holding.
