Mechel’s Profits Down 81% in 2019

20 March 2020 (09:07)

UrBC, Chelyabinsk, March 20, 2020. The profits due to Mechel’s shareholders dropped by 81% in 2019, down to RUB 2.4 billion.

According to the company’s official releases, Mechel’s (IAS-compliant) consolidated revenues declined by 5% last year on the year 2018 and reached RUB 296.6 billion.

The company’s EBITDA dropped by 29% in 2019 against 2018 and came to RUB 53.4 billion.

‘The profits due to Mechel’s shareholders decreased by RUB 10.2 billion in 2019 compared with 2018 and amounted to RUB 2.4 billion. A drop in gross profits (-RUB 26.1 billion) caused by shrinking sales to third parties and growing prime costs was the key factor in this. At the same time, this was made up for by the Russian ruble strengthening against the U.S. dollar, which resulted in foreign exchange gain and therefore less foreign debt,’ says CFO Mechel Nelly Galeyeva.

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