SEATTLE (Scrap Monster): Australia-headquartered metals and electronics scrap recycler Sims Limited reported surge in profits during the initial six-month period of fiscal 2021, despite subdued sales. The company reported 480% jump in EBITDA during the six-month period from July to December in 2020. This is despite 10% dip in sales revenue. Sim’s EBITDA totalled $177.10 million, as compared with $30.5 million during the corresponding half-yearly period during previous fiscal.
According to company press release, ferrous and nonferrous prices increased significantly, compared to the lowest level reported in April 2020. The company swung from losses a year before to an income of $10.5 million in its UK operations. The Oceania region operations witnessed 24% jump in profits. However, the biggest gains were recorded in North American operations, with earnings surging higher from $100,000 a year before to as high as $24.4 million.
Meantime, the e-scarp operations of the company witnessed 54% year-on-year drop in profits from $14.8 million to $6.8 million.
Alistair Field, group CEO and managing director, Sims Ltd. said that the company delivered significantly better results, mainly due to improved margins, higher prices and lower operating costs.