Mechel, one of the leading Russian mining and steel groups, has announced that in 2010 its consolidated net income increased by 791.2 percent to $657.2 million, compared to its consolidated net income of $73.7 million in 2009.
Mechel's net revenue in 2010 increased by 69.4 percent, amounting to $9.7 billion, its operating income rose by 523.7 percent to $1.5 billion or 15.72 percent of net revenue, while its consolidated adjusted EBITDA increased by 193.6 percent to $2 billion, all compared to 2009.
"It would not be an exaggeration to say that last year became one of the most successful in history of the company in terms of production and financial performance... The impressive growth in our operating profit, which is more than six times higher than the 2009 figure, created a good basis for further growth and a corresponding increase in shareholder value," Mechel's CEO Yevgeny Mikhel said.
Capital expenditure on property, plant and equipment and acquisition of mineral licenses for the year 2010 amounted to $990.1 million, of which $621.9 million was invested in the mining segment, $315.2 million was invested in the steel segment, $41.7 million was invested in the ferroalloy segment and $11.2 million was invested in the power segment. In 2010, Mechel spent $107 million on acquisitions.
As of December 31, 2010, Mechel's total debt was $7.3 billion, its cash and cash equivalents amounted to $340.8 million, and its net debt amounted to $7 billion.