Russian mining and steel group Mechel has announced its consolidated financial results for the first nine months of the current year. In the given period, Mechel saw a net profit of RUB 5.54 billion ($85.19 million) compared to a net loss of RUB 74.58 billion in the same period of 2015. In the January-September period, Mechel's sales revenues increased by one percent year on year to RUB 196.35 billion ($3.01 billion). In the same period, the company's EBITDA increased 16 percent year on year to RUB 41.57 billion ($638.87 million), while its EBITDA margin was 29 percent compared to 24 percent in the corresponding period of last year.
In the January-September period this year, Mechel’s crude steel output decreased by three percent to 3.13 million mt, while its pig iron output declined by two percent to 3.01 million mt, both year on year. Mechel's run-of-mine coal production in the first nine months of the year decreased by two percent compared to the same period of 2015 to 17.08 million mt.
According to Mechel’s statement, bullish price dynamics in spring this year in the global market for steel and coal products also led to a revival of the domestic market. The group remains dependent on the external market environment, but for its part did its best to utilize the favorable market situation by controlling and cutting costs and improving production and sales efficiency, as well as adapting its sales policy to growing demand and investing in projects aimed at diversifying its product range and increasing production volumes.