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OAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading vertically integrated steel and steel-related mining companies, today announces its Q3 and 9M 2013 financial results.
Q3 2013 vs. Q2 2013 ANALYSIS:
- Vigorous focus on cost control and efficiency enhancements drove continued earnings improvements in Q3. Cost control highlights include:
- 13.3 % q/q decrease in cost of sales at Severstal Russian Steel;
- 23.7% decrease in consolidated G&A expenses;
- Vorkuta coking coal unit costs 19.8% lower at $81/t;
- Revenue decreased 6.5% q/q to $3,192 million (Q2 2013: $3,414 million) due to softer prices and sales volumes at Severstal Russian Steel and at Severstal Resources’ iron ore units;
- EBITDA up by 13.4% q/q to $543 million (Q2 2013: $479 million) driven by cost control and efficiency improvements at Severstal Russian Steel and Severstal Resources. EBITDA margin increased 3.0 ppts to 17.0% (Q2 2013: 14.0%), the highest since Q2 2012;
- Net profit of $157 million (Q2 2013: net loss of $44 million, driven by FX losses of $226 million);
- Capex of $282 million broadly in line q/q (Q2 2013: $253 million);
- Recommended dividend payment of 2.01 roubles per share (approximately $0.06) for the 9 months ended 30 September 2013.