Mechel’s sales revenue increases by five percent in 2018

Thursday, 21 March 2019 17:12:13 (GMT+3)   |   Istanbul

Russian mining and steel group Mechel has announced its financial results for 2018. Last year, the company registered a net profit of RUB 12.63 billion ($202.08 million) increasing by nine percent year on year. For the same year, Mechel’s sales revenues rose to RUB 312.57 billion ($5 billion), rising by five percent year on year. The operating profit of the company decreased by 13 percent year on year to  RUB 49.7 billion ($795.2 million).

The revenue of Mechel’s mining segment from external customers in 2018 totaled RUB 96.8 billion ($1.55 billion), down three percent, while its steel segment revenues from external customers in the same year amounted to RUB 187.9 billion ($3 billion), up nine percent, both year on year.

Mechel CEO Oleg Korzhov stated, “The revenue growth was due to positive price dynamics in steel and steelmaking commodity markets. EBITDA went down year on year because of a decline in the mining division’s product sale volumes due to railcar shortages in the second half of 2018 and the corresponding shift in the division’s focus to overcome the underrun of resource preparation for future mining.”

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