By Marine Strauss

BRUSSELS, (Reuters) – ArcelorMittal (NYSE :), world’s second-largest steelmaker announced on Thursday that it will increase its dividend. It also revealed a $1 billion capital return for first half of this year. This announcement came after the company reported better than expected fourth quarter earnings.

This increase brings to $7.2 million the company’s capital returns since September 2020. At its annual general assembly, it will request further authorization to repurchase shares. This 27% increase in dividends took place when the share price was raised from $0.30 to $0.38.

The net debt of the company grew to $4.03 Billion from $3.87 Billion, which is 15.3% higher than ING analysts’ estimates. At 0941 GMT, the shares had fallen by 2.93% and were now at 28.52 euro.

ArcelorMittal stated that it anticipates steel consumption (excluding China) to rise between 2.5% and 3.3%. It also expects its steel shipments to increase by 3% in 2022. The company sees positive long-term prospects for steel. It believes inventories are now fully replenished, and that demand recovery is continuing.

The group also said the global steel industry would benefit from structural changes occurring in China, including: China’s focus on decarbonisation and the removal of VAT‐rebates on steel exports.

Markets most closely watched the fourth quarter core profit (EBITDA), which was almost five times higher than the year before. It was slightly lower than the median forecast of $4.95billion in a poll by companies.

Company expects to see strong EBITDA in 2022 and free cash flow generation by the end of that year.