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 $297 million, up 23.2 percent compared to the first quarter of the year, while the company's revenues increased by 16 percent quarter on quarter to $1.92 billion, due to the increase in sales volumes and decrease of stocks in traders’ warehouses against the backdrop of a stronger ruble to the US dollar. In the second quarter, MMK's EBITDA increased by 0.7 percent to $455 million, with the EBITDA margin declining to 23.6 percent from the EBITDA margin of 27.2 percent in the previous quarter.
In the first half of this year, the company’s net profit increased by 10.7 percent to $538 million, while its revenues rose by 37.8 percent to $3.58 billion, due to increased average sales prices and the strengthened ruble, both on year-on-year basis. In the same period, MMK’s EBITDA went up by 29.2 percent to $907 million, with an EBITDA margin of 25.3 percent compared to the 26.9 percent recorded in the same period of 2016.
MMK stated that currently it sees a seasonal uptick in the domestic market, which means an increase in sales of finished products in the third quarter of this year. It is anticipated that the increase in steel prices seen since July this year in MMK’s main export markets will support domestic sales prices in the third quarter.