In its financial results according to International Financial Reporting Standards (IFRS) for the first half of the current year, Russian steelmaker NLMK Group's net profit decreased by 27 percent year on year to $796 million. The company's sales revenues amounted to $5.67 billion, down four percent year on year, driven by an eight percent decrease in average sales prices, which was partially offset by the four percent growth of sales volumes.
In the first half of this year, NLMK Group's EBITDA was $1.43 billion, falling by 17 percent year on year, while its EBITDA margin decreased to 25 percent compared to 29 percent in the corresponding period of the previous year.
In the third quarter, NLMK, expects steel output to reduce by 2-3 percent quarter-on-quarter due to the overhauls at NLMK Lipetsk blast furnace and basic oxygen furnace operations. A quarterly reduction is anticipated in sales volumes, coupled with an increase in the share of finished and high value added products in the company’s sales mix.