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 loss of RUB 36.878 billion ($529.283 million) compared to a RUB 11.336 billion ($176.082 million (at $1 = RUB 64.4) net profit in the same period of the previous year. This was the result of foreign exchange losses on currency liabilities caused by a significant ruble devaluation in the reporting period, the company stated. In the given period, Mechel’s sales revenues decreased by nine percent year on year to RUB 68.3 billion ($980.26 million). The operating profit of the company fell by 35 percent year on year to RUB 7.016 billion ($100.696 million).
In the first quarter, the revenue of Mechel’s mining segment from external customers amounted to RUB 18.082 billion ($259.518 million), down 26 percent year on year, while its steel segment revenues from external customers remained stable at RUB 42.144 billion ($604.862 million).
Meanwhile, the company's EBITDA in the first quarter amounted to RUB 12.69 billion ($182.13 million), falling by 17 percent compared to the corresponding period of the previous year, SteelOrbis has learned.