[Ferro-Alloys.com] Russian steel maker PJSC Magnitogorsk Iron & Steel Works announced its financial results for Q3 and 9M 2020. MMK CEO Mr Pavel Shilyaev said “The gradual global economic recovery trend that emerged in mid-Q2 continued into Q3 amid vigorous efforts by national authorities around the globe. In Russia, for instance, the government quickly provided assistance to the sectors of economy most affected by the pandemic, as well as introduced measures to support real disposable household income to give the necessary impetus for further economic recovery despite the still looming threat of the COVID-19 pandemic. In this respect, I would like to stress that MMK maintains a strong focus on taking all necessary measures to protect the health of the Group's workers and employees and ensuring the continuity of all business processes.”

 

Q3 -MMK Group’s revenue increased by 23.4% QoQ to USD 1,565 million, which reflects a growth in sales volumes thanks to a recovery in business activity and a rise in steel prices due to positive market trends in Russia and globally. EBITDA for Q3 2020 amounted to USD 350 million, up 54.9% q-o-q, reflecting the improving market environment in Q3 and a significant growth in the share of higher-margin domestic sales. EBITDA margin increased by 4.6 pp to 22.4%. Despite a rouble devaluation in Q3, net profit was up by 75.9% q-o-q to USD 102 million.

 

9M - MMK Group’s revenue declined by 22.3% YoY to USD 4,543 million due to the challenging market situation and the reconstruction of Hot-Rolling Mill 2500. EBITDA decreased by 30.4% YoY to USD 1,018 million following the overall slowdown in business activity and correction in global steel prices driven by the spread of the pandemic. EBITDA margin was down by 2.6 pp to 22.4%. Net profit declined by 62.1% YoY to USD 291 million, mainly due to worsening market conditions and the growing foreign exchange losses driven by rouble devaluation.

 

Source: STEELGURU