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 $392 million, up 40.5 percent compared to the first quarter of the year, while the company's revenues increased by 2.5 percent quarter on quarter to $2.1 billion, thanks to growth of sales volumes of finished products, an improved sales mix and higher prices. In the second quarter, MMK's EBITDA increased by 16.1 percent to $650 million, with the EBITDA margin rising to 30.9 percent from the EBITDA margin of 27.3 percent in the previous quarter.
Meanwhile, in the first half of this year, the company’s net profit increased by 24.7 percent to $671 million, while its revenues rose by 16 percent to $4.16 billion, due to an increase in sales volumes and an increase in average sales prices. In the same period, MMK’s EBITDA went up by 33.4 percent to $1.21 billion, with an EBITDA margin of 29.1 percent compared to the 25.3 percent recorded in the same period of 2017.
MMK stated that currently it sees healthy demand for metal on its sales markets, which ensures full capacity utilization and supports the price premium on domestic market and added that its performance in the third quarter will be affected by some correction in steel prices amid lower business activity on sales markets and stabilization in prices for key raw materials.