Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for the first quarter of this year.
In the first quarter, MMK registered a net profit of $477 million, more than triple compared to $131 million in the same quarter of the previous year, reflecting the increased business margins amid the recovery in the global markets. The company’s revenue increased by 27.8 percent year on year to $2.18 billion, driven by higher sales due to the completion of the modernization at hot rolling mill 2500 and the upward trend of market prices for metal products.
In the given quarter, MMK’s EBITDA rose by 64.3 percent year on year to $726 million, reflecting higher revenues. In the meantime, the EBITDA margin increased to 33.2 percent, from 25.8 percent in the same quarter of the previous year.
The company’s Turkey-based subsidiary MMK Metalurji’s revenue in the first quarter increased by 46.9 percent year on year to $166 million, reflecting higher sales volumes and a favorable market environment.
According to MMK, the favorable conditions in global markets coupled with seasonal growth in demand in Russia will positively impact the company’s sales in the second quarter. With the commissioning of the reverse cold rolling mill 1700 expected in May, MMK expects to see a further improvement in the structure of its sales portfolio. On the other hand, the start of the construction season in Russia along with positive dynamics of global steel prices on the back of the remaining deficit in international markets will support the growth of MMK Group's steel product prices in the second quarter.