NLMK Group experienced a 62 percent drop in net profit year-on-year to $300 million due to the distribution of 2011 dividends from its subsidiaries, according to Russian Accounting Standards.
In the second quarter, the steelmaker’s sales revenues grew 3.3 percent to $1.9 billion year-on-year. Sales increased during Q2 by 15 percent and prices decreased six percent year-on-year, SteelOrbis reports.
Also contributing to the increase in sales revenue was an increase in the share of semi-finished products as part of total sales.
NLMK increased its crude steel output during the second quarter to 3.842 million metric tons, 93.6 percent of which was produced domestically. This represented a 5.7 percent increase compared to the first quarter. Finished steel production grew seven percent quarter-on-quarter to four million metric tons.
The steelmaker’s total sales volume of steel products dropped 1.6 percent year-on-year to 3.81 million metric tons. The sales of long steel metalware and products grew 22.7 percent and 20.4 percent quarter-on-quarter respectively, according to SteelOrbis.
NLMK anticipates that its third quarter crude steel production will remain stable despite price softening in the steel market. The company anticipates that its EBITDA margin could reach approximately 18 percent.