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 $279 million, up 15.8 percent year on year, while the company's revenues increased by 23.8 percent year on year to $2.05 billion, due to the increase in sales volumes by 268,000 mt or 10.5 percent, and the rise in average sales prices.
MMK's EBITDA increased by 23.9 percent to $560 million in the first quarter of the current year, with the EBITDA margin rising from 27.2 percent to 27.3 percent, both year on year. MMK stated that this significant growth in EBITDA was due to finished product prices growing faster than raw material prices, and was also due to the improved sales mix.
MMK stated that it currently sees healthy demand for its products in the domestic market. However, the growth in finished steel sales volumes in the second quarter of this year could be restrained by the continued scheduled equipment maintenance. In addition, in the second quarter, the company’s financial performance will be driven by higher prices for steel in the domestic market amid the seasonal recovery in demand and the devaluation of the Russian ruble, along with the correction in prices for key raw materials.