Russian steelmaker Severstal has announced its financial and operational results for the fourth quarter and the full year of 2021.
Accordingly, in the fourth quarter last year, Severstal registered a net profit of $978 million, decreasing by 20.9 percent compared to the previous quarter, while its sales revenues increased by 1.9 percent compared to the third quarter to $3.26 billion, due to higher sales volumes. This was partially offset by a decrease in average selling prices.
In the full year, the company registered a net profit of $4.07 billion, compared to $1.01 billion in the previous year, while its sales revenues increased by 69.4 percent year on year to $11.64 billion, due to higher steel prices and increased steel sales.
Severstal’s EBITDA moved up by 146.8 percent year on year to $5.97 billion in 2021, while the company’s EBITDA margin in the given period was 51 percent compared to 35 percent in the previous year.
In 2021, Severstal’s crude steel output totaled 11.64 million mt, up by 2.9 percent year on year, driven by the commissioning of the electric arc furnace No. 1 in April of last year. The company’s pig iron production in the given period totaled 10.64 million mt, up by 14.8 percent year on year, following the launch of blast furnace No. 3 in December 2020.
In the full year, Severstal’s steel sales totaled 11.1 million mt, up by 5.7 percent year on year, while the company’s sales of semi-finished products grew by three times year on year to 1.41 million mt, following higher outputs of pig iron and crude steel, coupled with repairs in the hot rolled shop.
Meanwhile, the company stated that it plans to invest $1.6 million in 2022. Investments in Severstal’s Russian Steel division in the given year will amount to $1.12 million in total, with $675 million to be allocated to development projects and $246 million to maintenance.
