Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for the first quarter of this year according to International Financial Reporting Standards (IFRS).
In the first quarter, MMK registered a net profit of $241 million compared to a net profit of $157 million in the first quarter of the previous year, while the company's revenues increased by 58.1 percent year on year to $1.66 billion, due to higher sales prices and stable shipping volumes for finished products.
MMK's EBITDA increased by 106.4 percent to $452 million in the first quarter of the current year, with the EBITDA margin rising from 20.9 percent to 27.2 percent, both year on year.
MMK stated that currently it sees slowing domestic demand linked to high levels of reserves held by traders and added that by June this year this situation should change as stockpiles fall and as demand for steel in the domestic market returns to its usual seasonal level. In the current year, demand for steel in Russia is expected to recover by 1-2 percent compared to 2016 levels.