Mechel posts US GAAP net profit of $309 mln in Q1, EBITDA - $567 mln
MOSCOW. June 29 (Interfax) - Mechel posted a net profit of $309 million in the first quarter of 2011 under US GAAP, beating the consensus forecast of $292 million, the company said in a statement. EBITDA was $566.9 million, below the forecast of $599 million.
Revenue totaled $2.93 billion ($2.96 billion).
Overall debt stood at $8.2 billion as of March 31, 2011. Net debt was $7.9 billion.
Mechel financial highlights for Q1 2011 ($ mln):
| Q1 2011 | Q1 2010 | Q1 2011/Q1 2010, % | |
| Sales revenue | 2 934 491 | 1 900 415 | 54,4% |
| Operating profit | 448 354 | 147 624 | 203,7% |
| Net profit | 309 116 | 82 580 | 274,3% |
| EBITDA | 566 852 | 254 029 | 123,1% |
| EBITDA margin | 19,32% | 13,37% | - |
Mining segment EBITDA was $361.2 million. The EBITDA margin rose to 33.19% in Q1 2011, from 25.33% in the same period of last year.
"In Q1 2011, the mining segment has done well. In spite of the temporary halt of Neryunrginskaya washing plant and accordingly the decrease in end product output at Yakutugol, the Group's mining segment managed to avoid a significant decrease in the Q1 2011 operational results by taking a set of prompt measures, and to minimize the halt's impact on the segment's financial performance as well. By mid-February, we had already re-launched two of the washing plant's three sections, gradually increasing its load. We also used the plant's halt for making all of the overhaul repairs that had been scheduled for 2011. In May, the washing plant's third section was re-launched in limited operation. The washing plant is currently working at full load. Lately, demand from traditional importers of coal - China, South Korea and Japan - remained at a fairly high level. All this allows us to expect that the mining segment will show good financial results in 2011," the company said.
Steel segment EBITDA was $149.8 million and the margin rose to 8.11% from 3.64%.
"In Q1 2011, we saw a certain decrease in demand for the steel segment's products due to instability in North Africa. Despite that, the segment's revenue and adjusted EBITDA grew by more than 10%," Mechel said.
The Mechel Group has consolidated controlling stakes in coal, steel and iron ore companies and a number of ports. General Director Igor Zyuzin is Mechel's chief beneficiary. The ADR free float is around 30%.