Mechel boosts Q3 EBITDA 28% to $219 mln
MOSCOW. Dec 9 (Interfax) - Mechel boosted earnings before taxes, depreciation and amortization (EBITDA) 28% quarter-on-quarter in Q3 2014 to $219 million, the coal and metals group said in a financial report to US GAAP.
EBITDA fell 22% year-on-year in January-September 2014 to $470 million.
Net debt, excluding financial lease liabilities, fell 9.3% during Q3 2014 to $7.84 billion from $8.65 billion, due to the partial redemption of bonds under an offer and the ruble's devaluation.
Gross margin grew 2 percentage points in Q3 to 38%. This figure was 35% for the 9M.
Adjusting operating profit grew 160% in July-September to $107 million, but fell 43% for the 9M to $124 million.
"This year the company operated as the situation changed dynamically both in the economy as a whole and in the markets for the products we manufacture and sell. A significant slump of coal and iron ore prices, major volatility of ruble conversion rates and other factors led to an uneven dynamics of our financial results from quarter to quarter. Our steel segment demonstrated strong results, reaching in the third quarter 2014 record EBITDA margin of 14% and increased its share in the group's consolidated EBITDA to nearly 45% over this year's nine months," Mechel CEO Oleg Korzhov is quoted in the statement as saying.
Mechel's main financial results for Q3 and 9M ($mln):
| Q3 2014 | Q3 2014/Q2 2014 | 9M 2014 | 9M 2014/9M 2013 | |
| Revenue | 1 588 | -9% | 5 032 | -25% |
| Adjusted operating profit | 107 | + 2,6 | 124 | -43% |
| EBITDA | 219 | 28% | 470 | -22% |
| EBITDA margin | 13,8% | 4 p.p. | 9,3% | 0,4 p.p. |
| Net loss | 575 | + 800% | 1 223 | 46% |
| Adjusted net loss | 15 | -90% | 321 | -2% |