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Mechel reports financial results for 2018

Steel News - Published on Mon, 25 Mar 2019

Image Source: SteelGuru
Mechel PAO announced financial results for the FY 2018. Mechel PAO’s Chief Executive Officer Oleg Korzhov said “The Group finished the year 2018 with a year-on-year 5% increase in revenue and 9% increase in profit attributable to equity shareholders of Mechel PAO. EBITDA went down by 7% year-on-year. The revenue growth was due to positive price dynamics in steel and steelmaking commodity markets. EBITDA went down year-on-year because of a decline in the mining division’s product sale volumes due to railcar shortages in the second half of 2018 and the corresponding shift in the division’s focus to overcome the underrun of resource preparation for future mining. This decision enabled us to decrease accumulated product stocks and increase stripping works, which will have positive effect in the future. The negative impact of the decline in shipment volumes was partly made up by the favorable market situation, which enabled us to sell metallurgical coal at average prices exceeding levels of 2017.”

Min rublesFY 2018FY 2017%4Q' 183Q' 18%
Revenue
from contracts with external customers312,574299,1135%75,57179,965-5%
Operating profit49,78057,167-13%1,97815,161-87%
EBITDA75,66781,106-7%15,02119,206-22%
EBITDA, margin24%27%20%24%
Profit
attributable to equity shareholders of Mechel PAO12,62811,5579%1,6316,304-74%

 


Mechel PAO’s Chief Financial Officer Nelli Galeeva said “Consolidated EBITDA in 2018 amounted to 75.7 billion rubles, which is 7% less than in 2017. Profit attributable to equity shareholders of Mechel PAO grew by 9% year-on-year, due to increase in revenue as well as finance income from the write-off of fines and penalties, which resulted from our fulfilling the conditions of our debt’s restructuring by Russian state-owned banks, and which totaled 17.5 billion rubles, as well as 13 billion rubles from restructuring the pre-export syndicated loan.”

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Posted By : Rabi Wangkhem on Mon, 25 Mar 2019
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