Metalloinvest’s net profit falls in 2020 amid varying exchange rate trends

Wednesday, 24 February 2021 15:50:43 (GMT+3)   |   Istanbul

Russia-based leading global iron ore and hot briquetted iron producer Metalloinvest has announced its financial results for the full year ended December 31, 2020.

In 2020, Metalloinvest registered a net profit of $1.34 billion, decreasing by 22.8 percent owing to different trends of the Russian ruble/dollar exchange rate, while the company’s revenue decreased by 7.9 percent to $6.41 billion, both year on year.

In the same year, its adjusted EBITDA amounted to $2.47 billion, falling by 1.7 percent compared to 2019 due to the changes in market structure. Metalloinvest’s EBITDA margin in 2020 rose to 38.5 percent, from 36.1 percent in the previous year.

Meanwhile, the company’s crude steel production totaled 4.97 million mt in 2020, up by two percent year on year by reason of the reconstruction of an electric arc furnace at Ural Steel carried out in 2019, the optimization of repair time at OEMK, and the recovery in demand for Rolling Mill 2800’s products. In 2020, the company’s iron ore production amounted to 40.4 million mt up by 0.5 percent year on year. This is mainly attributed to an increase in productivity due to the change in the characteristics of processed ore. The company’s iron ore shipments rose by 6.5 percent year on year to 28.7 million mt due to an increase in pellet shipments to Europe. In the same period, the company’s pig iron shipments fell by 28.4 percent to 1.24 million mt, while shipments of finished steel products rose by 1.5 percent to 4.64 million mt, both year on year.

The company expects favorable market conditions to continue in early 2021.

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