Russian steelmaker Severstal has announced its financial results for the fourth quarter and the full year of 2012. Accordingly, in the fourth quarter Severstal registered a net loss of $150 million compared to a net profit of $329 million in Q3 2012. In the full year, the company's net profit amounted to $762 million, compared to a net profit of $2.035 billion recorded in 2011
In the last quarter of 2012, Severstal's sales revenues decreased by 13.2 percent quarter on quarter to $3.116 billion, reflecting lower realized prices and volumes, while Severstal's revenues for 2012 were recorded at $14.104 billion, with an decrease of 10.8 percent compared to the previous year as a result of lower prices and slightly weaker sales volumes at its Russian Steel division. At the same time, Severstal’s EBITDA in 2012 decreased 40.9 percent year on year to $2.119 billion, while its EBITDA margin for the year was 15 percent, down from 22.7 percent recorded in 2011.
According to Severstal's statement, the company's results for the fourth quarter last year were negatively impacted by traditionally lower steel demand in Russia during the winter period, as well as by weak economic conditions globally.