Russian coking coal and steel producer Mechel posted an 800% jump in its 2010 US GAAP net profit to $657.2 million, Mechel said on Monday.
Mechel's net profit was below a profit forecast of analysts polled by RIA Novosti who expected the company's net financial result at $714 million.
Mechel's revenues in 2010 grew by almost 70% to $9.746 billion from $5.754 billion in 2009, while EBITDA grew 190% to $2.015 billion from $686.6 million the year before, the company said in a statement.
"Last year has become one of the most successful in the history of the company in terms of production and financial performance. Our drive to increase production, develop new products and new markets, amid continuing efforts to implement strategic investment projects, has in no small measure contributed to it," Mechel CEO Yevgeny Mikhel said.
The company's 2010 operating profit rose 520% to $1.532 billion, pre-tax profit jumped almost 900% to $968.6 million, while EBITDA margin almost doubled to 20.7% from the year-on-year 11.9%.
As of December 31, 2010, Mechel's overall indebtedness amounted to $7.3 billion. Cash and cash equivalents as of the end of 2010 totaled $340.8 million, while the company's net debt totaled $7 billion.
Mechel's 2010 capital expenditure on fixed assets and the purchase of new mineral licenses amounted to $990.1 million.
In 2010 Mechel spent $107 million on several acquisitions, including $70.2 million on the purchase of 51% in Toplofikatsia Rousse power plant, and $17.5 million on the acquisition of minority stakes in its subsidiaries.
MOSCOW, April 11 (RIA Novosti)
