Russian steelmaker Severstal has announced its financial and operational results for the second quarter and the first half of the current year.
Accordingly, in the second quarter this year, Severstal registered a net profit of $1.14 billion, increasing by 58.0 percent compared to the previous quarter, while its sales revenues increased by 32.8 percent compared to the first quarter to $2.95 billion.
In the first half, the company registered a net profit of $1.86 billion, increasing by four times compared to the same half last year, while its sales revenues increased by 57 percent year on year to $5.16 billion, due to higher steel prices and sales volumes.
Severstal’s EBITDA moved up by 166.0 percent to $2.81 billion in the first half this year, when compared to the same half of the previous year, due to higher steel prices. Meanwhile, the company’s EBITDA margin in the given period was 54.0 percent, reaching record high.
In the first half this year, Severstal’s crude steel output totaled 5.74 million mt, up by one percent year on year, driven by the commissioning of the electric arc furnace No. 1 in April this year. The company’s pig iron production in the first half totaled 5.30 million mt, up by 12 percent compared to the first half of the previous year, following the launch of blast furnace No. 3 in December last year.
In the January-June period, Severstal’s steel sales totaled 5.31 million mt, up by four percent year on year, while the company’s sales of semi-finished products grew by 181 percent year on year to 580,000 mt, following higher output of crude steel, coupled with repairs to the hot-rolled shop. The company’s total share of domestic sales volume in the given half decreased to 51 percent amid favorable export market conditions in the first three months of the current year.
Meanwhile, the company continues to improve its environmental strategy, setting a medium-term goal to reduce the carbon intensity of carbon emissions per tonne of steel by 10 percent by 2030, as SteelOrbis previously reported. In addition, Severstal expects steel and commodity prices to soften later this year, however, the company remains confident to deliver strong returns remaining of the year.