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, NLMK Group’s net profit grew 19 percent quarter on quarter to $1.62 billion, while the company’s net profit in the first nine months this year was $3.7 billion compared to $678 million in the same period last year, driven by gross profit growth.
The company’s sales revenues in the third quarter amounted to $4.56 billion, up 10 percent quarter on quarter, amid an increase in steel prices. In the January-September period this year, NLMK’s sales revenues amounted to $11.56 billion, up by 69 percent year on year, amid higher average sales prices and an increase in the share of finished products in the sales portfolio.
In the third quarter this year, NLMK Group saw EBITDA growth to $2.28 billion, up 11 percent quarter on quarter, while its EBITDA margin was at 50 percent remaining the same compared to the previous quarter. In the first nine months this year, the company’s EBITDA totaled $5.50 billion, compared to $1.75 billion in the same period last year, due to the implementation of the company’s Strategy 2022 projects, while its EBITDA margin in the given period was 48 percent, compared to 26 percent in the first nine months last year.
“In the third quarter of 2021, average steel prices grew across all key markets. In the US, prices hit new highs. Starting from the middle of the quarter, demand growth in export markets slowed down, coupled with the ongoing recovery of local production and imports. The decrease in steel production and declining exports in China supported global steel prices, leading to an adjustment of iron ore prices at the same time. Australia coal export prices continued to climb amid restocking activities in India, Europe, and Japan,” Shamil Kurmashov, CFO of NLMK Group, said.