Russian steelmaker Severstal has announced its financial and operational results for the first quarter of the current year.
Accordingly, in the first quarter this year, Severstal registered a net profit of $721 million, increasing by 86.8 percent compared to the previous quarter, while its sales revenues increased by 28.8 percent compared to the fourth quarter last year to $2.22 billion, reflecting higher steel sales volumes and favorable price dynamics.
Severstal’s EBITDA moved up by 63.7 percent to $1.16 billion in the first quarter this year, when compared to the previous quarter, driven by higher revenues. Meanwhile, the company’s EBITDA margin in the same quarter was 52.4 percent, maintaining the group’s position as the global leader in terms of EBITDA margin in the steel industry globally.
In the given quarter, Severstal’s crude steel output totaled 2.96 million mt, up by seven percent quarter on quarter and by four percent year on year. The company’s pig iron production in the first quarter totaled 2.67 million mt, up by 12 percent compared to the previous quarter, following the launch of blast furnace No. 3.
In the first quarter this year, Severstal’s steel sales totaled 2.63 million mt, up by eight percent compared to the fourth quarter last year, following higher output volumes and the completion of short-term maintenance works in the previous quarter. The company increased its share of steel export shipments to 52 percent compared to 35 in the fourth quarter last year, due to higher demand.
The company anticipates that its domestic steel sales will increase in the second quarter with the start of the construction season in Russia.