In its financial results according to according to International Financial Reporting Standards (IFRS) for the first quarter of this year, Russian steelmaker NLMK Group's net profit decreased by 82 percent year on year to $57 million, declining by 25 percent compared to the last quarter of 2015. The company's sales revenues amounted to $1.57 billion, down 29 percent year on year and decreasing by four percent quarter on quarter due to the reduction in average sales prices. In the same quarter, NLMK Group's EBITDA decreased by 55 percent year on year to $290 million, declining by ten percent compared to the last quarter of 2015 while the EBITDA margin fell by 11 percentage points to 18 percent on year-on-year basis, with a two point decline from the previous quarter.
In the first quarter of 2016, NLMK Group's sales volume increased by five percent year on year to 4.14 million mt, rising by 10 percent on quarter-on-quarter basis, thanks to the higher sales of finished steel in the key markets.
NLMK Group stated that in the first quarter of this year its capital expenditure sequentially decreased by 19 percent to $121 million, rising by four percent on year-on-year basis, including $63 million maintenance capital expenditure that equals 52 percent of total capital expenditure. The company also explained that in the first quarter of 2016 a revamp of the hot dip galvanizing unit was completed at the Lipetsk site, increasing the company’s HDG capacity by 120,000 metric tons.