Mechel, one of the leading Russian mining and steel groups, has announced its financial results for the first quarter of the current year.
In the January-March period this year, Mechel saw a net profit of RUB 7.89 billion ($107.28 million) compared to a net loss of RUB 36.87 billion in the same period of the previous year. This was the result of foreign exchange gains on foreign currency liabilities, the company stated. In the given period, Mechel’s sales revenues increased by 13 percent year on year to RUB 76.05 billion ($1.03 billion). The operating profit of the company rose by 63.5 percent year on year to RUB 12.97 billion ($176.24 million).
Meanwhile, the company’s EBITDA in the first quarter amounted to RUB 18.24 billion ($247.84 million), rising by 39 percent compared to the corresponding period of the previous year.
In the first quarter, the revenue of Mechel’s mining segment from external customers amounted to RUB 16.24 billion ($220.63 million), down four percent year on year, due to reduced sales volumes, while the division’s EBITDA in the given period rose by 20 percent year on year, totaling RUB 8.33 billion ($113.07 million). In the first quarter, the company’s steel segment revenues from external customers increased by 22 percent to RUB 51.29 billion ($696.78 million), due to a price growth both domestically and internationally, for all of the segment’s key products, while the EBITDA of the steel segment in the given period went up by 107 percent year on year to RUB 9.40 billion ($127.67 million).