The Ukrainian mining and steel producing group Metinvest has announced its financial results for the first half of the current year.
In the given period, Metinvest recorded a net profit of $90 million, compared to a net loss of $166 million in the same period of 2015. In the first half this year, the company's revenues decreased by 21 percent year on year to $2.88 billion, primarily driven by lower selling prices in the global markets. The metallurgical division accounted for 80 percent of external sales and the mining division accounted for 20 percent.
During the first six months, the company's adjusted EBITDA amounted to $580 million, down seven percent year on year, with an EBITDA margin of 20 percent, up three percentage points year on year.
Metinvest stated that it continued to face challenges posed by the difficult geopolitical and economic situation in Ukraine and volatility in prices for its key products in the global market. However, the company was able to enhance margins by changing its sales geography, which enabled it to lower distribution costs. In addition, falling prices of coal and coke, as well as lower expenditures on natural gas, also contributed to margin growth.