Russia-based leading global iron ore and hot briquetted iron (HBI) producer Metalloinvest has announced its financial results for the first quarter ended March 31 of this year. In the first quarter, Metalloinvest registered a net income of $177 million, compared to a net loss of $542 million in the last quarter of the previous year, while its revenue fell by two percent quarter on quarter to $1.24 million, while the decrease in revenue was marginal due to high exposure to export markets.
Meanwhile, in the first quarter, Metalloinvest's adjusted EBITDA from continuing operations increased by seven percent to $458 million, while its EBITDA margin rose to 37 percent from 33.9 percent, both quarter on quarter.
In the period in question, Metalloinvest's capital expenditures decreased by 28.8 percent to $94 million, mostly resulting from scheduled completion of construction of key facilities at Pellet Plant No. 3 at MGOK.
Pavel Mitrofanov, Deputy CEO and chief financial officer of Management Company Metalloinvest, commented, "We are pleased to have achieved robust Q1 2015 results, including improved profitability and leverage ratios. Our ongoing focus on operational efficiency and competitive advantages - such as low costs, significant volumes of high value-added products, unique transport routes and a diversified customer base - made a strong contribution to this growth. Our conservative financing strategy and prudent approach to capital expenditures have allowed us to decrease leverage, thereby lowering our risk profile for creditors. At the same time, we continue to increase our production capacities for high value-added products, to be launched in 2015-2016."