LKAB's operating margin 45%

The good result was achieved despite increased costs due to higher energy prices and disruptions in production.

Net sales in 2022 were SEK 46.5 billion, a decrease from 2021 when sales were SEK 48.8 billion. Lower prices for highly processed iron ore products and lower delivery volumes were offset by a strong dollar exchange rate.

Operating profit in 2022 was SEK 20.8 billion (SEK 26.9 billion in 2021). Shipment volumes decreased slightly due to lower production volumes, and for the full year were 25.8 million tonnes (27.0).

LKAB is continuing its efforts to become a supplier of raw material for the production of fossil-free steel. A development that presents challenges in the future. Among other things, faster permit processes and decisions on increased energy supply are required.

“The current situation has reinforced the need for our transformation, but we are seeing progress increasingly at risk since the complexity has increased in the short term. Industrialising new technology involves managing complex risks. One example is energy supply, where decisions have not yet been made that will help market actors expand electricity production so that supply meets future demand – thereby keeping prices down,” says Jan Moström, President and CEO LKAB.  

The Board of Directors is proposing to the Annual General Meeting that the ordinary dividend be SEK 7,540 million, which is 50% of the year's profit. Last year, the dividend paid to the owner, the state, was SEK 12,430 million.

LKAB operates large iron ore mines in Kiruna, Gällivare/Malmberget and Svappavaara in Norrbotten.

LKAB is Europe's largest iron ore producer. The core product is mined in north Sweden and shipped out to the rest of the world from ports in Narvik in Norway and Luleå in Sweden.

Lennart Håkansson

editor@northswedenbusiness.com