Russia’s Mechel posts net profit for Jan-Sept

Mechel, one of the leading Russian mining and steel groups, has announced its financial results for the first nine months of the current year. In the January-September period this year, Mechel saw a net profit of RUB 53.08 billion ($728.94 million) compared to a net loss of RUB 15.76 billion in the same period of the previous year. This was the result of foreign exchange gains on foreign currency liabilities, the company stated. In the given period, Mechel’s sales revenues increased by 47 percent year on year to RUB 287.82 billion ($3.95 billion). The operating profit was RUB 72.24 billion ($991.95 million), compared to RUB 12.02 billion in the first nine months of the previous year. Meanwhile, the company’s EBITDA in the first nine months amounted to RUB 83.88 billion ($1.15 billion), rising by 167 percent compared to the corresponding period of the previous year. In the January-September period, the revenue of Mechel’s mining segment from external customers amounted to RUB 75.32 billion ($1.03 billion), up 44 percent year on year, while the division’s EBITDA in the given period rose by 160 percent year on year, totaling RUB 51.43 billion ($706.16 million). In the first nine months, the company’s steel segment revenues from external customers increased by 55 percent to RUB 191.70 billion ($2.63 billion), due to increased sales volumes, while the EBITDA of the steel segment in the given period went up by 240 percent year on year to RUB 34.42 billion ($472.62 million).