Mechel, one of the leading Russian mining and steel groups, has announced its financial results for the third quarter and the first nine months of this year.
In the third quarter, the company registered a net loss of RUB 571 million ($8.91 million), compared to a net profit of RUB 1.41 billion in the second quarter of this year. For the same period, Mechel’s sales revenues decreased by five percent to RUB 74.86 billion ($1.17 billion), compared to the second quarter of the year. The operating profit of the company decreased by 18 percent on quarter-on-quarter basis to RUB 8.18 billion ($127.63 million).
The revenue of Mechel’s mining segment from external customers in the third quarter totaled RUB 23.42 billion ($365.4 million), down by seven percent as global coal markets weakened and due to decreased sales volumes of coking coal concentrate, while its steel segment revenues from external customers in the same period amounted to RUB 45.48 billion ($709.6 million), decreasing by three percent as overall output volumes and steel product sales decreased due to a sweeping program of current and capital repairs to the equipment at the division’s facilities, both quarter on quarter.
Meanwhile, in the first nine months of this year, the company posted a net profit of RUB 12.17 billion ($189.9 million), up 11 percent year on year. Dynamics of foreign exchange gains on foreign currency obligations had a major impact on this indicator in connection with the ruble strengthening against the US dollar and euro in this reporting period. In the same period, the company’s sales revenues totaled RUB 228.19 billion ($3.6 billion), decreasing by four percent, while its operating profit totaled RUB 28.94 billion ($451.62 million), declining by 39 percent, both year on year.
In the January-September period of this year, the revenue of Mechel’s mining segment from external customers totaled RUB 73.23 billion ($1.14 billion), remaining stable year on year, while its steel segment revenues from external customers decreased by seven percent year on year to RUB 134.3 billion ($2.1 billion).