Johannesburg - Highveld Steel and Vanadium reported on Friday in interim condensed consolidated financial statements for the nine months ended 30 September 2009 that headline earnings per share from operations decreased from 2 124.2 cents to 105.4 cents.

The operating profit before depreciation (Ebitda) for the nine months ended 30 September 2009 was R294m, with a profit for the period of R105m. This compares to an Ebitda of R3 260m and a profit of R2 107m for the same period last year.

Group revenue from operations decreased by 61% from R7 664m to R3 019m.

The directors highlighted in their report that uncertain market conditions remain, but pointed out that the Competition commission had found no collusion of Highveld in the long product steel market.

The group's profit was reported to be negatively affected by the reversal of the deferred tax asset of R66m in its subsidiary, Hochvanadium Holdings, as a consequence of weakening vanadium prices, which did not allow full depreciation of the procurement right.

"The recent rise in energy tariffs and the indication of substantial future increases, together with the continuing challenges of rail transport, further aggravates the consequences of the weak market. This makes it more difficult for the Corporation, in the short term, to efficiently manage its costs downwards," said the company when talking about business risks.

- I-Net Bridge