As per its financial results according to international financial reporting standards (IFRS) for the full year of 2016, Russia-based leading global iron ore and hot briquetted iron (HBI) producer Metalloinvest recorded a net profit of $1.15 billion, increasing from the net profit of $218 million in 2015, while its revenues decreased by three percent year on year to $4.26 billion.
Metalloinvest's EBITDA decreased by 12.2 percent year on year to $1.25 billion in 2016 and its EBITDA margin, which had been 32.6 percent in the previous year, declined to 29.5 percent.
Metalloinvest stated that in 2016 it achieved record production volumes of iron ore products at its subsidiaries Lebedinsky GOK and Mikhailovsky GOK, while its outputs of crude steel at Oskol Metallurgical Plant (OEMK) and Ural Steel reached all-time historical highs. The increase in outputs was achieved as a result of the timely implementation of development projects, such as the pellet plant No. 3 at Mikhailovsky GOK, and the modernization of existing facilities, including blast furnace No. 4 at Ural Steel and the gas purification system at OEMK.
The company expects to increase its share of high value-added products, while it also expects the continued stability in global iron ore prices will have a positive effect on its results in the current year.