Russian steelmaker Severstal has announced its financial results for the second quarter and the first half of the current year. Accordingly, in the second quarter Severstal registered a net profit of $608 million, rising 125.2 percent compared to the previous quarter. In the first half, the company's net profit amounted to $878 million, compared to a net profit of $806 million recorded in the corresponding period of the previous year.
In the second quarter of the current year, Severstal's sales revenues increased by 44 percent quarter on quarter to $1.58 billion, reflecting a sharp rise in average selling prices for both steel and raw materials, as well as higher sales volumes primarily in the Russian Steel Division due to seasonally higher demand in the domestic market. During the first six months, the company’s sales revenues amounted to $2.67 billion, down 19.8 percent year on year, primarily reflecting a substantial decline in average selling prices at both Russian Steel and Resources, as a result of the net decline in global prices.
According to Severstal, overcapacity issues and growing protectionism remain challenges for the steel industry, distorting global free trade principles and impacting customers. In this context the company plans to mitigate these issues with further initiatives to reduce costs, raise quality and service, export more value-added products and to reach out to new markets. These initiatives, combined with a strong financial position, enable the company to continue to deliver long-term shareholder value.