Russia-based leading global iron ore and hot briquetted iron (HBI) producer Metalloinvest has announced its financial results for the second quarter and the first half ended June 30 of this year.
In the second quarter, Metalloinvest registered a net income of $339.8 million, rising by 92.1 percent compared to the first quarter, while its revenue decreased by 3.1 percent to $1.20 billion compared to the previous quarter. In the second quarter, Metalloinvest's adjusted EBITDA from continuing operations decreased by 9.6 percent to $413.5 million, while its EBITDA margin declined to 34.5 percent from 37 percent, both on quarter-on-quarter basis. In the period in question, Metalloinvest's capital expenditures increased by 10.6 percent quarter on quarter to $104 million.
In the first half of this year, Metalloinvest registered a net income of $516.6 million, compared to a net income of $549 million in the same period of 2014, while its revenue fell by 31 percent year on year to $2.43 billion, mainly due to weakening prices for iron ore products. In the given period, Metalloinvest's adjusted EBITDA from continuing operations decreased by 20.2 percent to $871.9 million, while its EBITDA margin rose to 35.8 percent from 30.9 percent, both on year-on-year basis. In the period in question, Metalloinvest's capital expenditures decreased by 31 percent to $198 million.
Pavel Mitrofanov, deputy CEO and chief financial officer of Management Company Metalloinvest, commented, " Despite a challenging environment related to the global iron ore market conditions and national currency fluctuations, the company continued to demonstrate a solid performance across key financial metrics in the first half of 2015. It is also important to highlight that in July we signed a new long-term agreement with a consortium of international banks for a $750 million pre-export finance facility, which enables the company to meet all of its liabilities with respect to 2016 maturities.”