Metalloinvest achieves robust performance amid adverse conditions

The financial results for the second quarter, published by the Russian group Metalloinvest, show that its revenue was $ 3,533 million, down 7.7 percent year-on-year, its EBITDA (earnings before interest, taxes, depreciation, etc.) depreciation) reached $ 1,087 million, down 11.6 percent in the same way as net income of $ 549 million.

However, the company maintained its EBITDA margin at 30.8 percent and the Net Debt /EBITDA ratio decreased compared to December last year. The company was upgraded to BB with BB- by S & P and Fitch. In addition, the group of companies is completing the expansion of facilities at MGOK, installation of equipment for the OEMK oxygen station, and construction of a HBI plant at LGOK.

Pavel Mitrofanov, Chief Financial Officer of Metalloinvest, said that “Our robust financial results ensure a stable market position in the high-value-added segments. Despite the significant decline in iron ore prices, we have managed to maintain our EBITDA margin above 30 percent.”

In the first half of 2014, iron ore production amounted to 193 million tons, which is 0.7 percent higher than the level of the same period last year; pellets - 11.5 million tons, which is 3.2 percent higher; reduced iron (HBI and DRI) - 2.8 million tonnes, an increase of 2.9 percent; pig iron - 1.1 million tons, an increase of up to 0.8 percent; crude steel - 2.3 million tons, down 4.5 percent.