Russian mining and steel group Mechel has announced its consolidated financial results for 2017. In the given year, Mechel saw a net profit of RUB 11.55 billion ($200.64 million), rising by 62 percent compared to 2016. In 2017, Mechel's sales revenues increased by eight percent year on year to RUB 299.11 billion ($5.19 billion), while its EBITDA rose by 23 percent year on year to $81.10 billion ($1.41 billion).
The revenue of Mechel's mining segment from external customers in 2017 totaled RUB 100.12 billion ($1.74 billion), up 12 percent, due to favorable market conditions, while its steel segment's revenue from external customers in the same year amounted to RUB 172.76 billion ($2.99 billion), rising by seven percent, largely due to changes in our production and sales structure, both compared to the previous year.
Mechel stated that it plans to increase mining volumes by further developing its Elga Coal Complex. Production plans for the Elga deposit in the current year include mining volumes growth by nearly a quarter, up to nearly 5.3 million mt. In its steel segment, in order to further improve its product range, Mechel continues to master new types of high value-added products in demand in the market.