Russian mining and steel group Mechel has announced its consolidated financial results for the first quarter of the current year, posting a net loss of $273 million, down from $585 million in the first quarter of the previous year.
In the first quarter, Mechel's sales revenues amounted to $1.11 billion, falling 34 percent, largely due to the devaluation of the ruble, as 60 percent of the company's revenue was in rubles. Mechel's steel segment revenue decreased by 35 percent year on year and 19 percent quarter on quarter to $601 million, due to devaluation of the ruble despite maintaining steel production unchanged at previous quarter levels and a moderate decline in sales volumes.
Additionally, Mechel produced 1.1 million mt of crude steel in the given quarter, rising by seven percent, while its pig iron output increased by 12 percent to 1.05 million mt, both year on year. Mechel's run-of-mine coal production in the first quarter declined by one percent to 5.5 million mt compared to the corresponding quarter of 2014.