Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for the second quarter and first half of the current year according to International Financial Reporting Standards (IFRS).
In the second quarter, MMK registered a net profit of $329 million, up 109.6 percent compared to the first quarter of the year, while the company's revenues increased by 47.8 percent quarter on quarter to $1.55 billion, driven by higher sales volumes and a 38.2 percent increase in the average sales price in US dollars quarter on quarter as a result of a seasonal demand recovery and the strengthening of the ruble. In the second quarter, MMK's EBITDA increased by 95.1 percent to $560 million, with the EBITDA margin increasing to 36.1 percent from the EBITDA margin of 27.3 percent in the previous quarter.
In the first half of this year, the company’s net profit increased by 3.8 percent to $486 million, while its revenues decreased by 17.6 percent to $2.6 billion, both on year-on-year basis. In the same period, MMK’s EBITDA declined by 12 percent to $847 million, with an EBITDA margin of 32.6 percent compared to the 30.5 percent recorded in the same period of 2015.
MMK stated that it does not expect a significant drop in prices in its export markets during the third quarter and anticipates a slight correction in prices in its domestic market.