Sahaviriya Steel Industries Plc. reports its Q4 and year 2015 operating result
• Consolidated financial statements for the year 2015 were reclassified to present the operations into 2 parts: 1) the Continuing Operations which excluded the operating results of Upstream Business (SSI UK); and 2) the Discontinued Operations which presented the loss from Discontinued Operation of Upstream Business (SSI UK) for the period from 1 January 2015 to 2 October 2015.
• The Group recorded consolidated loss of 1,456 MB in Q4/2015, mainly resulted from default interest recorded.
• The Group recorded consolidated loss of 40,840 MB in 2015, including loss from Discontinued Operation of 38,037 MB.
• Upstream Business (SSI UK) has been in liquidation proceeding since 2 October 2015; there was no operating performance in Q4/2015.
• The inquiring date for Business Rehabilitation of the Company was scheduled on 17 February 2016.
Mr. Win Viriyaprapaikit, Group CEO and President of Sahaviriya Steel Industries Plc. (SSI), revealed the Q4/2015 operating result that “The Company and its subsidiaries recorded sales and service revenues Baht 4,128 million, down 61% QoQ and 71% YoY, and the Group Sales Volume was 246 thousand tons due to 1) no revenue related to the Discontinued Operation; 2) a decrease in HRC Sales Volume and HRC Average Selling Price resulted from a continuing drop in world steel prices; as well as 3) customers prolonging orders from concerns about the Company’s situation during the beginning period of the Company submitting a petition for Business Rehabilitation. The Company and its subsidiaries reported net loss Baht 1,456 million, improving 96% QoQ and 6% YoY as there was no operating loss from the Discontinued Operation in this period.”
“In 2015, the Company and its subsidiaries recorded sales and service revenues Baht 20,173 million, down 39% YoY following 1) exclusion of revenues from Discontinued Operation and 2) a decrease in HRC Sales Volume and HRC Average Selling Price as the world steel prices had been dropping sharply. Group Sales Volume was 1,126 thousand tons. EBITDA was negative Baht 37,907 million and net loss was Baht 40,840 million, including loss from Discontinued Operation of Baht 38,037 million.”
“As communicated earlier, the Company is proceeding with Business Rehabilitation, in order to carry on operations as normal, including to maintain our business value and competitiveness. The Company is now able to carry on operations and generate income with sufficient working capital for production and sale, supported by customers and trading partners who still have confidence in the Company’s business.”
“The Court scheduled the inquiry date for the petition on 17 February 2016. The Company is confident that after the Court orders the Company for Business Rehabilitation and appoints the Plan Preparer, trading partners and financial institutions will gain more confidence and will be willing to consider additional support to the Company’s business which will gradually enhance liquidity, sales volume, operating performance, and financial position of the Company.”