Higher coal prices help Russia's Mechel swing to Q3 net profit
MOSCOW – Russian coal and steel producer Mechel said on Tuesday higher prices for its products had helped it swing into a net profit in the third quarter after a loss a year earlier.
Higher coal prices has been supporting Mechel, which borrowed heavily before Russia’s economic crisis took hold in 2014 and then struggled to keep up debt repayments.
The company, controlled by businessman Igor Zyuzin, has restructured the bulk of its debt since then but is yet to start major debt repayments.
It said its July-September net profit was 6.1-billion roubles compared with a net loss of 2.8-billion roubles in the same period a year earlier.
“Prices for our coal products remain comfortable both domestically and internationally,” CEO Oleg Korzhov said in a statement.
“The steel product market, which was weak in the first half of this year, went back to normal by mid-year due to growing steel prices and stabilisation of costs for raw materials for steelmaking,” he added.
Mechel said its third-quarter revenue rose 11% year-on-year to 73.4-billion roubles, while earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 19% to 18.9-billion roubles.
Its net debt, excluding fines and penalties on overdue amounts, was 463.8-billion roubles at the end of September, broadly unchanged from the start of 2017.
Mechel said earlier on Tuesday that its January-September coal production fell, while its third-quarter sales of coking coal concentrate were affected by an unsteady supply of wagons caused by a lack of railway stock in the Russian Railways network.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...
VISIT SHOWROOM
ECG provides specialised electrical engineering services to the Mining, Utilities, Materials Handling and Industrial industries, with extensive and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
