Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for the third quarter and first nine months of the current year according to International Financial Reporting Standards (IFRS).
In the third quarter, MMK registered a net profit of $401 million, up 2.3 percent compared to the second quarter of the year, while the company's revenues slightly decreased by 0.7 percent quarter on quarter to $2.1 billion, due to the fall in the average sale price of finished products against a backdrop of a decreasing share of products with a higher added value. In the third quarter, MMK's EBITDA increased by 3.2 percent to $671 million, with the EBITDA margin rising to 32.1 percent from the EBITDA margin of 30.9 percent in the previous quarter.
Meanwhile, in the first nine months of this year, the company’s net profit increased by 31.7 percent to $1.07 billion, while its revenues rose by 11.7 percent to $6.25 billion, due to a retention of sales volumes against a backdrop of an increase in average sales prices by $76/mt, or 13.5 percent. In the same period, MMK’s EBITDA went up by 30.6 percent to $1.88 billion, with an EBITDA margin of 30.1 percent compared to the 25.7 percent recorded in the same period of 2017.
MMK stated that, at the moment, it sees stable demand for steel products in its sales markets, which secures high capacity utilization at its main facilities and is supported by the growth of global steel consumption and the program to reduce production capacity in China. The company's financial results for the fourth quarter of 2018 will be affected by the decrease in global steel prices and the seasonal correction in the domestic market, against a backdrop of stabilizing prices for key raw materials.