Russian steelmaker MMK reported its strongest quarterly earnings in a decade, up 26% from a year earlier, but warned that lower global steel prices could affect fourth-quarter earnings.
The Group's third quarter revenue before tax and amortization (EBITDA) was USD 671 million, the highest since 2008. The results boosted the group's shares by 1.7 percent.
The firm, controlled by Russian businessman Viktor Rashnikov, said revenue increased 3.9 percent in the third quarter from the beginning of the year to $ 2.09 billion.
Revenue declined 0.7% quarter-on-quarter due to falling selling prices, but the company said profits were partially up as cost of sales decreased due to "stabilized key feedstock prices."
Looking to the future, MMK says it sees stable demand for steel products in its sales markets, fueled by rising global steel consumption and a program to reduce production capacity in China, but global steel prices could put pressure on the results.
“The company's (fourth quarter) financial results will depend on a decline in world steel prices and a seasonal adjustment in the domestic market amid stabilization of prices for key raw materials,” MMK said in a statement.
The Board of Directors announced that it recommends the payment of dividends for the third quarter in the amount of 2.114 rubles per share.
MMK is cautious in its forecasts after the strongest quarter in a decade
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Azovpromstal® 4 November 2018 г. 17:54 |
