The Russian steel producer Novolipetsk Steel (NLMK) has announced that, under US GAAP (Generally Accepted Accounting Principles), in Q2 2010 it recorded a net income amounting to $459 million - up 252 percent compared to Q1 2010. In H1 2010, NLMK's net income amounted to $590 million compared to net loss of $243 million in H1 2009.
"The improved quarterly and half‐yearly financial performance was driven by the better pricing environment in the domestic and export markets, a larger share of high‐value added products and an increase in finished product sales," reads NLMK's statement.
In Q2 NLMK's sales volumes increased by five percent quarter on quarter to 2.9 million mt. Its consolidated sales revenue in Q2 totaled $2.156 billion - up 27 percent quarter on quarter, mainly driven by higher sales prices (up 21 percent quarter on quarter) and improved sales of HVA products. Sales revenue in H1 2010 was 49 percent higher year on year, due to better pricing in 2010, changes to the product mix and better geography of sales. The bulk of sales revenue was made up by the steel segment (about 87 percent), long products segment (10 percent) and coke‐chemical segment (three percent).
NLMK's Q2 2010 EBITDA totaled $774 million, a 101 percent increase quarter on quarter. The EBITDA margin was 36 percent - up from 23 percent in Q1, thus reaching the pre-crisis levels. Meanwhile, in H1 2010, NLMK's EBITDA amounted to $1.161 billion - up 169 percent compared to H1 2009. The H1 EBITDA margin was 30 percent, a 13 percentage point increase year on year.
NLMK's net debt as of June 30, 2010 totaled $948 million - down one percent compared to March 31, 2010.