Sonasid just closed the accounts for the 1st half of 2016. Revenues for Sonasid amounts thus to 1561 MDH against 2121 MDH in the 1st half of 2015 due to drop in shipments and average selling price. EBITDA contracted to 19.7 MDH vs 123 MDH in first half of 2015 due to the decrease in turnover and the stagnation of provision of stock. Operating income fell to -40 MDH against 45 MDH in the 1st half of 2015. The net result is in defici at -44 million dirhams compared to 41.8 million dirhams in the same period in 2015.
The financial performance is affected by a national market with excess capacity in a context of weak demand growth and high volatility of the prices of scrap and billet. Such conditions led to a sharp deterioration in prices and significant destocking in June 2016.
Nevertheless, Sonasid managed to maintain its leading position on the domestic market for long products. A performance that is based on improving its competitiveness through its development activities in distribution and the significant reduction in production costs of the steel mill and its two rolling mills.
However, market conditions remain very competitive, the steel industry is a global industry that is facing the challenge of overcapacity. In this context, Sonasid must continue to develop its range of products and services and its cost rationalization actions to restore sustainable profitability.
