OREANDA-NEWS. Continued focus on cost control together with higher sales volumes resulted in a second consecutive quarter of EBITDA growth;
Revenue increased by 2.8% q/q to USD 3,414 million (Q1 2013: USD 3,322 million), driven primarily by higher sales volumes across all divisions;
EBITDA up by 11.4% q/q to USD 479 million (Q1 2013: USD 430 million), as a result of improved performances at Severstal Russian Steel and Severstal Resources; EBITDA margin 1.1 ppts up to 14.0% (Q1 2013: 12.9%);
Net loss of USD 44 million, as compared to net profit of USD 44 million in Q1 2013 mainly due to USD 226 million FX losses in Q2. Excluding the FX losses due to weaker rouble the company’s profit for the period would be USD 182 million;
Q2 2013 capex of USD 253 million5, 18.1% lower than in Q1 2013;
Recommended dividend payment of 2.03 roubles per share (approximately USD 0.06) for the 6 months ended 30 June 2013.
H1 2013 vs. H1 2012 analysis:
Revenue down 8.9% y/y to USD 6,736 million (H1 2012: USD 7,397 million) as a result of lower prices;
EBITDA reduced by 27.2% y/y to USD 909 million (H1 2012: USD 1,249 million) reflecting lower steel, iron ore and coking coal prices;
Breakeven, as compared to net profit of USD 582 million in H1 2012 mainly due to USD 241 million FX losses in H1 2013. Excluding the FX losses due to weaker rouble the company’s profit for the period would be USD 246 million.
Financial position highlights:
Prudent debt management led to gross debt 4.9% lower q/q to USD 5,454 million and net debt down 5.4% to USD 3,960 million. Net debt/EBITDA ratio broadly stable at 2.2x;
Solid liquidity: USD 1,494 million in cash and cash equivalents, exceeding short-term debt of USD 1,107 million6 with committed unused credit lines of USD 1,264 million.