Severstal’s sales revenues down 8.7 percent in Q3

Tuesday, 23 October 2018 14:53:43 (GMT+3)   |   Istanbul
       

Russian steelmaker Severstal has announced its financial results for the third quarter of the current year. Accordingly, in the given quarter Severstal registered a net profit of $455 million, falling by 18.3 percent compared to the second quarter of this year. In the January-September period of this year, the company’s net profit reached $1,47 billion, increasing 86 percent compared to the same period of the previous year.

In the third quarter of the current year, Severstal's sales revenues decreased by 8.7 percent quarter on quarter to $2.06 billion due to reduced sales volumes of steel products and iron ore pellets, as well as declining steel prices on quarter-on-quarter basis, while in the January-September period the company’s sales revenues amounted to $6.49 billion, up 14.6 percent year on year.

Severstal's EBITDA declined by 12.1 percent to $768 million in the third quarter when compared to the second quarter of this year while it increased by 28.8 percent year on year to $2.34 billion in the first nine months this year. Meanwhile, the company’s EBITDA margin in the third quarter was 37.2 percent, down from 38.7 percent recorded in the second quarter of 2018. In the January-September period, its EBITDA margin was 36.2 percent, up from 32.2 percent recorded in the same period of the previous year.

According to Severstal’s statement, strong Chinese market and global GDP growth supported global steel prices in the third quarter of this year and China’s active environmental policy has had a strong effect, with the introduction of selective production restrictions and certain Chinese steel producers relocating capacity ahead of the winter heating season. Fort he fourth quarter, the company said global steel demand are expected to be remain at good levels following strength of the world’s economy and continued capacity cuts in China.


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