Russian steelmaker Severstal has announced its financial results for the fourth quarter and the full year of 2014. Accordingly, in the fourth quarter Severstal registered a net loss of $795 million compared to a net loss of $45 million in the third quarter. In the full year, the company's net loss amounted to 1.602 billion, compared to a net profit of $83 million recorded in 2013.
In the last quarter of 2014, Severstal's sales revenues decreased by 16.2 percent quarter on quarter to $1.878 billion, despite a high share of high value-added (HVA) products in the sales portfolio at Russian Steel as well as significant sales volumes growth at the Resources division. The revenue decrease reflects a decline in average selling prices (at both divisions) on the back of the sharp loss of value of the Russian ruble.
Severstal's revenues for 2014 amounted to $8.296 billion, down 12.1 percent compared to the previous year as a result of lower realized prices and sales volumes year on year at the Russian Steel and Resources divisions, and despite substantial improvements in product mix at both divisions.
At the same time, Severstal's EBITDA in 2014 increased by 21.2 percent year on year to $2.203 billion, while its EBITDA margin for the year was 26.6 percent, up from 19.3 percent recorded in 2013.