As per its financial results according to international financial reporting standards (IFRS) for the first nine months of the current year, Russia-based leading global iron ore and hot briquetted iron (HBI) producer Metalloinvest saw its net profit decline by 33.1 percent compared to the same period of the previous year to $407 million.
In the January-September period this year, the company's revenues decreased by 31 percent year on year to $3.52 billion.
Metalloinvest's EBITDA decreased by 19.6 percent year on year to $1.23 billion in the first nine months, while its EBITDA margin, which had been 30 percent in the same period last year, rose to 35 percent.
The company stated that in the third quarter global prices for its main products remained under pressure due to excess supply and the economic slowdown in emerging markets. In addition, the traditional maintenance works at the company’s HBI facilities affected its sales structure. However, due to low production costs and its unique combination of iron ore and steel assets, as well as the company’s presence in niche markets, Metalloinvest kept its EBITDA margin above 30 percent in the reporting period. Also, the launch of pellet plant No. 3 at Mikhailovsky GOK, which has a production capacity of 5 million mt per year, will increase the share of high value-added products, which is one of Metalloinvest's key priorities.