Russian mining and steel producing company Evraz Group has announced its unaudited interim results for the six months of the current year.
In the given period, Evraz registered a consolidated revenue of about $3.54 billion, decreasing by 27.6 percent compared to the same period last year. The consolidated EBITDA of Evraz for the first six months this year was $577 million, down 38.1 percent year on year, primarily reflecting the lagged effect of weak steel pricing. In the given period, the group's net profit amounted to $7 million, compared to a net profit of $19 million in the same period of 2015.
Evraz stated that it does not anticipate significant improvements in Russian steel demand in the second half of this year due to moderate investment activity and economic environment; it anticipates that current steel prices will gradually increase to the average seen in 2015. According to Evraz’s statement, in the second half this year, the North American segment will likely experience headwinds from large volumes of dumped and subsidized large diameter (LD) pipe imports into Canada, which will extend to 2017 and 2018 should no trade remedies be put into place against unfairly traded LD pipe from China and Japan this October. In addition, the company’s results may be negatively impacted by delays in approvals of key large pipeline projects in the US and Canada and continuing weak demand for rails.