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Mechel´s net profit jumped to $245 mln in the 1st quarter 2017

Russia's leading mining and metal company reported its net profit jumped to $245 mln in the 1st quarter.

Mechel´s net profit jumped to $245 mln in the 1st quarter 2017 Mechel´s net profit jumped to $245 mln in the 1st quarter 2017


Russia's leading mining and metal company Mechel reported on May 31, 2017, that its net profit jumped to $245 mln (13.9 bln roubles) in the 1st quarter 2017.

 

The company´s crude steel output increased 8 % year-on-year in the 1st quarter to 1.1 million tonnes.

 

Coal output and sales of coking coal concentrate both fell 10 % compared to the same period last year, to 5.2 million tonnes and 2 million tonnes respectively.

 

Consolidated Results For The 1Q 2017

Mln rubles 1Q 17 1Q 16 % 1Q 17 4Q 16 %
Revenue
from external customers
77,4 62,2 24% 77,4 79,6 -3%
Operating profit 18 6,3 186% 18 13,9 30%
EBITDA 22,8 9,9 129% 22,8 24,5 -7%
EBITDA, margin 29% 16%   29% 31%  
Net profit
attributable to equity shareholders
13,9 312   13,9 1,5  

 

Mechel´s CEO Oleg Korzhov commented on the 1Q 2017 operational results: «This accounting period can be considered as fairly favorable for the global coal market. After the aggressive price hike in 3Q 2016 and 4Q 2016, the market went back to the price level comfortable for most international mining companies.»

 

«In 1Q2017 we saw a hike in European demand for coke, which enabled us to increase sales to Germany and Turkey and generally increase sales to 3rd parties by 28%... The 83% increase in forgings sales was due to a stronger demand in the EU and weaker competition from other suppliers of similar products, as well as resumption of forgings supplies to Turkey. The 20 % increase in stampings sales was due to Russian wagon makers increasing their orders for car axles. As Urals Stampings Plant takes measures to build long-term ties with wagon-building companies, we expect a further increase in orders for car axles to come this year», said Korzhov.

 

Source : Neftegaz.RU