Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for the first quarter of the current year according to International Financial Reporting Standards (IFRS).
In the given quarter, MMK saw a net loss of $79 million compared to a net profit of $19 million in the same period of the previous year. In the first quarter this year, MMK's revenues declined by 17.7 percent year on year to $1.87 billion.
MMK Group's EBITDA for the first quarter was $294 million, down 22.8 percent year on year. This decrease was due to the one-off effect in the first quarter last year of $125 million from the sale of MMK-Trans.
MMK Group's net debt as of the end of the first quarter this year decreased by $124 million as compared to the end of 2013 to $2.9 billion.
MMK Group's free cash flow (FCF) in the first quarter of the current year amounted to $33 million.
As for the second quarter this year, MMK expects increased production and sales volumes as compared to the first quarter amid growth of domestic steel prices. In addition, declining global iron ore prices may support MMK Group's financial results for the second quarter.