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ArcelorMittal (MT) Gets Government Grant for LNG Project

Steel giant ArcelorMittal MT announced that ArcelorMittal Mining Canada has been awarded a C$4.5 million grant from the Quebec government which will allow its pellet plant to use a greater proportion of alternative fuels. The grant, which forms part of the Quebec government’s 2013−2020 Action Plan on climate change, aims to improve the carbon balance and energy efficiency of the province’s businesses.

The grant will be utilized to finance a pilot project for one of ArcelorMittal’s two production lines at its pellet plant in Port-Cartier enabling the furnace to cook pellet using liquid natural gas (LNG) and a lower amount of traditional fuel oil. This will aid the reduction of greenhouse gas emissions of more than 30% compared with oil-based fuel, and also considerably lower emissions of sulphur and other pollutants.

The government’s support will enable the development of the Plan Nord region’s emerging LNG sector. Also, it will showcase the technical feasibility of the project’s approach to energy conversion.

ArcelorMittal recently released its first-quarter 2016 results. The company posted a net loss of $416 million or 23 cents per share in the quarter, lower than a net loss of $728 million or 41 cents per share recorded a year ago. Excluding exceptional and non-cash items, adjusted net loss for the quarter was $176 million compared with adjusted loss of $36 million in the year-ago quarter. Adjusted loss of 10 cents per share for the reported quarter was narrower than the Zacks Consensus Estimate of a loss of 15 cents.

Revenues plunged 21.7% year over year to $13,399 million in the quarter and missed the Zacks Consensus Estimate of $14,189 million. The year-over-year decline resulted from lower average steel selling prices, lower market-priced iron ore shipments and a fall in iron ore reference prices.

ArcelorMittal currently has a Zacks Rank #2 (Buy).

Some other well-ranked companies worth considering in the steel industry include Ryerson Holding Corporation RYI, Olympic Steel Inc. ZEUS and POSCO PKX. While Ryerson Holding sports a Zacks Rank #1 (Strong Buy), both Olympic Steel and POSCO carry a Zacks Rank #2.

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ARCELOR MITTAL (MT): Free Stock Analysis Report
 
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