Mechel-Mining halves RAS net profit to 22 bln rubles in 2010
MOSCOW. Feb 22 (Interfax) - OJSC Mechel-Mining, which consolidates the Mechel Group's extraction assets, halved its unconsolidated net profit according Russian accounting standards (RAS) to 22.04 billion rubles for 2010 from 45.3 billion rubles for the previous year,
The company's RAS net profit for the fourth quarter of 2010 came to 7.805 billion rubles, which is an increase of 90% from 4.042 billion rubles posted for the same period of 2009.
The increase in net profit in comparison with the third quarter was driven by the rising market value of shares in the company's subsidiaries. The decrease in profit in comparison with 2009 was the result of the decreasing growth rate of stock value, as well as the shrinking amount of dividends transferred by Yakutugol.
The Mechel Group registered Mechel-Mining in April 2008. Mechel-Mining includes OJSC Yuzhnyi Kuzbass , OJSC Yakutugol, OJSC Korshunovsky GOK and OOO Mechel-Koks
Igor Zyuzin, Mechel's chief executive, is the Mechel group's main beneficiary. The free float in American Depositary Receipts (ADR) is around 30%.