Algoma Steel Group expects to report a steep decline in third quarter steel shipments after production was impacted by a turbine outage.

The Canadian steel producer said Thursday it expects to report around 145,000 tons of steel shipped during the third quarter that ended Sept. 30. That compares with 419,173 tons in the same period a year prior.

The decline was driven by a turbine outage at Lake Superior Power, the company said. The turbine has since been replaced and is operating at full power.

"As previously communicated, the LSP turbine outage temporarily constrained EAF production and was expected to affect shipment volumes," Chief Financial Officer Michael Moraca said. "Our third-quarter results reflect those impacts, including lower shipment volumes and a less favourable sales mix."

Algoma also guided for adjusted earnings before interest, taxes, depreciation, and amortization of between negative $10 million and negative $20 million. That includes a roughly $50 million to $55 million benefit from an expected capacity utilization adjustment.

Shares of Algoma slipped 2.4% to $4.01 in after-hours trading on Nasdaq.