In its financial results according to according to International Financial Reporting Standards (IFRS) for the first nine months of the current year, Russian steelmaker NLMK Group's net profit decreased by 30 percent year on year to $627 million. The company's sales revenues amounted to $5.6 billion, down 11 percent year on year, due to the fall in average sales prices. In the same period, NLMK’s EBITDA decreased by 13 percent to $1.42 billion, while the EBITDA margin decreased by one percentage point to 25 percent, both on year-on-year basis.
In the first nine months, NLMK's sales volume increased by two percent to 12.28 million mt, compared to the same period of the previous year.
NLMK stated that in November this year its subsidiary Stoilensky Mining and Beneficiation Plant (Stoilensky GOK) is planning to produce the first pellets at its new pelletizing plant, with the latter expected to cover 100 percent of the company’s iron ore pellet needs. This will enable the company to achieve a reduction in steel production costs.
NLMK also noted that the results of the fourth quarter will soften sequentially into a low season but profitability is expected to improve on a year-on-year basis.