In its financial results according to US GAAP (Generally Accepted Accounting Principles) for the first quarter of the current year, Russian steelmaker
NLMK Group's net profit increased by 85 percent year on year to $321 million. The company's sales revenues amounted to $2.21 billion, falling 16 percent year on year, due to the reduction in average sales prices, pressured, among other factors, by the devaluation of the Russian ruble.
In the first quarter,
NLMK's sales volume increased by two percent to 3.95 million mt, compared to the first quarter of the previous year, driven by an uptick in export sales to third parties. The company produced 3.87 million mt of steel, down one percent year on year due to planned maintenance works at blast furnace and basic oxygen furnace shops at the Lipetsk site, and repairs of electric arc furnace equipment at
NLMK USA planned to coincide with the low demand season.
NLMK said that in the second quarter sales are expected to increase driven, among other factors, by the seasonal uptick in the Russian market. At the same time, further contraction of spreads between steel product and raw material prices will put pressure on financials.