Severstal records increased net profit in January-September

Russian steelmaker Severstal has announced its financial results for the third quarter and the first nine months of the current year. Accordingly, in the third quarter Severstal registered a net profit of $429 million, compared to a net profit of $608 million recorded in the previous quarter. In the first nine months, the company's net profit amounted to $1.3 billion, rising from the net profit of $676 million recorded in the corresponding period of the previous year.

 

In the third quarter of the current year, Severstal's sales revenues increased by 0.5 percent quarter on quarter to $1.58 billion, while in the January-September period the company’s sales revenues amounted to $4.26 billion, down 14.7 percent year on year, primarily reflecting a substantial decline in average steel selling prices in the first quarter of this year.

 

Severstal's EBITDA in the third quarter increased by 11 percent to $584 million compared to the second quarter of this year, while in the first nine months the company’s EBITDA decreased by 18.4 percent year on year to $1.38 billion.

 

According to Severstal’s statement, following the contraction of Russia’s GDP in the current year, domestic steel demand softened during the first nine months of the year. However, many experts are forecasting that the economy will strengthen during 2017 which should boost steel demand.