Brazilian steelmaker CSN and its mining subsidiary CSN Mineracao announced on Wednesday a sharp rise in capital expenditure and targets maintaining low debt ratios next year.
CSN will increase consolidated capex next year by 46%, to 4.1 billion reais ($727.80 million). CSN Mineração announced 12 billion reais in capital expenditure from 2022 to 2026 to expand its production capacity.
Although CSN is planning to raise annual capex at its steelmaking operations by 30% to 1.3 billion reais a year between 2022 and 2026, the company said it is keeping its debt target below one times its earnings before interest, tax, depreciation and amortization, a common gauge of operational profit known as EBITDA.
($1 = 5.6334 reais)
(By Alberto Alerigi Jr. and Tatiana Bautzer; Editing by Louise Heavens)