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 $297 million, compared to a net profit of $136 million recorded in the previous quarter. In the first nine months, the company's net profit amounted to $792 million, declining by 39.4 percent compared to the same period of 2016.
In the third quarter of the current year, Severstal's sales revenues increased by 2.1 percent quarter on quarter to $1.97 billion, while in the January-September period the company’s sales revenues amounted to $5.67 billion, up 32.9 percent year on year. During the first nine months of this year, the company benefitted from a favorable steel and commodities pricing environment, which enabled it to achieve significant revenue growth year on year.
Severstal's EBITDA in the third quarter declined by 2.1 percent to $616 million compared to the second quarter of this year, while in the first nine months the company’s EBITDA increased by 31.8 percent year on year to $1.82 billion, as a result of increased group revenue.
Severstal stated that in Russia steel consumption continued to exceed expectations growing by eight percent in the first eight months driven by increased construction activity and investment in infrastructure. Broadly stable macro conditions are contributing to increasing economic confidence. As a result, Severstal expects the fourth quarter to be the strongest quarter of the year despite seasonal weakening.