NLMK's Q3 net profit up 77 percent compared to Q2 levels

Tuesday, 11 November 2014 17:00:26 (GMT+3)   |  
       

According to its financial results according to US GAAP (Generally Accepted Accounting Principles) for the third quarter of the current year, Russian steelmaker NLMK registered a net profit of $281 million in the third quarter, up 77 percent  quarter on quarter. This is largely related to the increase in profit from operations.

NLMK's sales revenues in the third quarter this year amounted to $2.607 billion, down seven percent quarter on quarter.

According to NLMK, its steel sales volume in the third quarter decreased by seven percent quarter on quarter to 3.583 million mt due to a higher share of long product sales.

EBITDA in the third quarter this year increased to $693 million, up 17 percent quarter on quarter, while the EBITDA margin expanded to 27 percent (up six percentage points quarter on quarter) due to lower production costs driven by, among other factors, the positive effect from the operational efficiency programs implemented at all the NLMK Group divisions.

During the third quarter, NLMK produced 4.131 million mt of steel, up 10 percent quarter on quarter, supported by the increase in utilization rates at the Lipetsk site following repairs in the second quarter and higher output at NLMK USA.

Regarding the fourth quarter, NLMK expects its sales to rise by 2-5 percent quarter on quarter, which will partially offset the seasonal softening in steel prices.


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