The Russian steelmaker Novolipetsk Steel (NLMK) has issued the second quarter 2008 Russian Accounting Standards (RAS) financial results for itself and its subsidiaries.
Accordingly, during the second quarter of 2008 NLMK's net profit increased by 3.5 times to Ruble 36.9 billion (approx. $1.57 billion), while its operating profit rose by 66.78 percent to Ruble 21.66 billion (approx. $932.4 million), both compared with same period last year. The company saw also an increase of 55.50 percent year on year in its sales revenue to Ruble 58.94 billion (approx. $2.15 billion) and a rise of 56.04 percent in its gross profit to Ruble 25.6 billion (approx. $1.09 billion) compared to Q2 2007, due to the rapid growth in steel product prices, mainly in the export markets.
During the period in question NLMK's subsidiary VIZ-Stal registered a slight decrease in its sales revenue of 2.32 percent year on year to Ruble 4.67 billion (approx. $199.1 million), while its net profit increased by 4.95 percent year on year to Ruble 2.33 billion (approx $99.56 million). VIZ-Stal's gross profit and operating profit increased respectively by 1.17 percent to Ruble 3.08 billion (approx. $131.56 million) and by 0.58 percent to Ruble 2.95 billion (approx. $125.9 million), both compared with the second quarter of 2007.
During the second quarter of 2008, revenues of NLMK's iron ore subsidiary Stoilensky GOK climbed by 13.04 percent to Ruble 5.93 billion (approx. $252.59 million), while its gross profit increased by 10.27 percent to Ruble 4.19 billion (approx. $178.54 million), both compared with Q2 2007. Stoilensky GOK registered also an increase of 10.32 percent in its operating profit and a rise of 14.39 percent in its net profit compared with the same period last year, respectively to Ruble 3.94 billion (approx. $167.92 million) and Ruble 3.35 billion (approx. $142.72 million).
Altai-koks' revenue for the period in question amounted to Ruble 7.33 billion (approx. $312.62 million), which is an increase of 79.46 percent on last year, while its net profit upped by 184.92 percent year on year to Ruble 711.79 million (approx. $30.34 million).
During the second half of 2008, NLMK's subsidiary NSMMZ increased its sales revenue by 76.90 percent to Ruble 12.03 billion (approx. $511.44 million) and its net profit by 50.14 percent to Ruble 1.89 billion (approx. $80.36 million), both compared with the same period last year.