NLMK Group's net profit quadruples in Q3 from Q2 level

Wednesday, 21 October 2020 15:34:57 (GMT+3)   |   Istanbul

Russian steelmaker NLMK Group has announced its financial results for the third quarter and the first nine months of the current year according to International Financial Reporting Standards (IFRS).

Accordingly, in the third quarter of the current year, NLMK Group’s net profit quadrupled quarter on quarter to $312 million.

The company’s sales revenues in the third quarter amounted to $2.2 billion, up three percent quarter on quarter as sales of steel products grew by two percent quarter on quarter to 4.4 million mt, while revenues decreased by 13 percent year on year due to a drop in steel prices and an increase in the share of semi-finished products in the sales mix.   

In the third quarter of this year, NLMK Group’s EBITDA was $579 million, falling by one percent quarter on quarter, while its EBITDA margin increased to 26 percent, compared to 25 percent in the corresponding period of the previous year.

In the first nine months of the current year, the company’s net profit fell by 40 percent year on year to $678 million. The company’s sales revenues totaled $6.9 billion, down 17 percent year on year, due to the drop in steel product prices and the increase in the share of semi-finished products in total sales to 40 percent versus 36 percent in the same period of the previous year. In the January-September period this year, the company’s EBITDA amounted to $1.8 billion, falling by 16 percent year on year.

“In the third quarter this year, global business activity began to recover gradually, driving an uptick in demand for steel in our traditional sales markets and an increase in steel product prices. Nonetheless, the growing amount of new coronavirus cases in a number of regions in September and uncertainty about future measures aimed at countering the pandemic could slow the global economic recovery. NLMK Group demonstrated strong operating and financial results in the past quarter,” NLMK Group CFO Shamil Kurmashov commented.

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