Russian steelmaker NLMK Group has announced its financial results for the fourth quarter and the full year of 2021, according to International Financial Reporting Standards (IFRS).
Accordingly, in the fourth quarter, NLMK Group’s net profit fell 21 percent quarter on quarter to $1.28 billion, while the company’s net profit in 2021 was $5.03 billion compared to $1.23 billion in 2020, driven by gross profit growth.
The company’s sales revenues in the fourth quarter amounted to $4.63 billion, up two percent quarter on quarter, amid an increase in steel prices and steel product shipments. In the full year, NLMK’s sales revenues amounted to $16.19 billion, up by 75 percent year on year, amid higher average sales prices and an increase in the share of finished products in the sales portfolio.
In the fourth quarter last year, NLMK Group saw EBITDA of $1.75 billion, down 23 percent quarter on quarter, while its EBITDA margin was 38 percent compared to 50 percent in the previous quarter. In 2021, the company’s EBITDA totaled $7.26 billion, compared to $2.64 billion in the previous year, due to the widening of steel product and raw material price spreads and the implementation of the company’s Strategy 2022 projects, while its EBITDA margin in the given period was 45 percent, compared to 29 percent in 2020.
“In the fourth quarter of 2021, we saw steel demand normalize in the US and European markets, accompanied by growing stocks. This caused a slowdown in consumer activity and consequently a reduction in steel prices. The decrease of internal and export prices in China amid low demand in the construction segment also contributed to the downward price trend,” Shamil Kurmashov, CFO of NLMK Group, said.