News

5 August 2015

Q2 and H1 2015 NLMK Group Consolidated Financial Results under US GAAP

Q2 and H1 2015 NLMK Group Consolidated Financial Results under US GAAP
H1 2015 highlights
  • Sales increased to 7.97 m t (+4% yoy) due to growth in exports of semi-finished products
  • Revenue was $4,356 million (-20% yoy) due to lower steel prices
  • EBITDA increased to $1,115 million (+5% yoy)
  • Effect from operation efficiency programmes totaled $102 million
  • EBITDA margin expanded to 26% (+6 p.p. yoy)
  • Capex increased to $293 million (+4% yoy)
  • Free cash flow decreased to $537 million (-27% yoy)
  • Net debt dropped to $1,133 million (-46% yoy)
  • Net debt/EBITDA was 0.47х
  • Net income increased to $491 million (+48% yoy). 
Q2 2015 highlights
  • Group utilization rate was 94% (flat qoq and yoy)
  • Sales increased to 4.0 m t (+1% qoq)
  • Revenue decreased to $2,140 million (-3% qoq) driven by falling export prices
  • EBITDA totaled $476 million (-25% qoq)
  • EBITDA margin was 22% (-7 p.p qoq)
  • Free cash flow totaled $218 million (-32% qoq)
  • Net income decreased to $170 million (-47% qoq)
Outlook

In Q3 2015, we expect production and sales to grow. Financial results will be impacted by low spreads between raw materials and steel prices.