Metalloinvest remains under pressure from depressed economic activity

Tuesday, 24 November 2020 15:52:38 (GMT+3)   |   Istanbul
       

Russia-based leading global iron ore and hot briquetted iron producer Metalloinvest has announced its financial results for the first nine months ended September 30 this year.

In the given period, Metalloinvest registered a net income of $752 million, decreasing by 49.3 percent, while the company’s revenue decreased by 14.2 percent to $4.57 billion, both year on year. The decrease in revenue was mainly due to a change in the structure of markets and a decline in prices, given the increase in transportation costs.

In the same period, its adjusted EBITDA amounted to $1.63 billion, falling by 22.8 percent compared to the first nine months of 2019, while its EBITDA margin decreased to 35.7 percent from 39.7 percent in the first nine months of 2019. The decline in EBITDA was mainly due to a decrease in the mining segment EBITDA.

Metalloinvest’s chief financial officer Alexey Voronov stated that the company’s results in the first nine months this year were as expected under pressure due to the deterioration of economic activity in global markets. He also added that the company was able to decrease costs by 17 percent. Metalloinvest said it expects positive dynamics to continue in the current year.


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