Russian mining and steel group Mechel has announced its consolidated financial results for the first quarter of the current year, posting a net profit of RUB 13.9 billion ($245.55 million), up from RUB 312 million in the first quarter of the previous year.
In the first quarter this year, Mechel's sales revenues amounted to RUB 77.41 billion ($1.36 billion), rising 24 percent year on year. Mechel's steel segment revenues increased by 20 percent to RUB 42.03 billion ($740.25 million), while its mining segment revenues rose by 40 percent to RUB 27.98 billion ($494.36 million), both on year-on-year basis.
The company stated that for its steel segment, which primarily produces construction range products, the first quarter is traditionally a time of weaker demand and lower prices. High prices for coal and iron ore, which support Mechel’s mining segment’s results, contributed to the production cost growth of its steel segment.
Additionally, Mechel produced 1.12 million mt of crude steel in the given quarter, rising by eight percent, while its pig iron output increased by four percent to 1.04 million mt, both year on year. Mechel's run-of-mine coal production in the first quarter declined by 10 percent to 5.07 million mt compared to the corresponding quarter of 2016.