By Inti Landauro
MADRID (Reuters) - Shares of Spanish steelmaker Acerinox soared on Wednesday after the company reported its highest ever quarterly net profit as strong demand for steel boosted prices.
The company posted a net profit of 266 million euros ($280 million), more than three times its result a year earlier, while output was stable at 668,000 tons.
The profit topped the 211 million euros expected by analysts polled by Refinitiv.
The shares traded 7.22% higher at 10.49 euros on Wednesday morning, leading the blue chip index IBER-35, which was 1.2% up.
The rapid post-COVID recovery, supply chain constraints and war in Ukraine have all helped drive up prices for commodities and steel is no exception.
Acerinox reported a 59% jump in revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) up to a record 422 million euros, 2.6 times what it recorded a year earlier.
The company said it expects the market trend to continue and to push EBITDA even higher in the second quarter. The outlook is higher than what the market expected, investment bank Credit Suisse said in a note to investors.
Expensive steel last year also propelled Acerinox's profits, as the company's net profit jumped 11-fold to 572 million euros.
Acerinox said it does not depend on Russia or Ukraine for raw materials and that those countries represent about 0.4% of its overall sales.
($1 = 0.9489 euros)