MOSCOW, April 2 (RIA Novosti) – Metalloinvest, one of Russia’s leading metals producers, posted an IFRS net profit of $1.724 billion for 2012, up 20.4 percent on the previous year, the company said on Tuesday.
The company, owned by Russian billionaire Alisher Usmanov, said its net profit included $369 million from the disposal of freight rail operator Metalloinvesttrans, a $195 million financial income from discount promissory notes, and also a $189 million foreign exchange loss on operating activities due to the ruble’s appreciation against the US dollar.
The company’s 2012 revenues fell 17.4 percent to $8.194 billion “mostly due to a decline in iron ore prices during the second half of 2012.”
The mining segment accounted for 48.9 percent of the company’s revenue in 2012 and the steel segment for 45.9 percent. The share of Russia and the CIS in the company’s revenue increased to 52 percent from 44 percent in 2011 “due to sales secured under long-term contracts.”
The company’s EBITDA for the year fell by 34.1 percent to $2.553 billion, with EBITDA margin down to 31.2 percent from 39.0 percent a year earlier, due to the drop in iron ore prices to $90 per ton during the second half of 2012.
Iron ore prices have recovered since late 2012 to an acceptable level of $130-140 per ton, the company said.
“Despite the challenging world economic situation and continued market volatility, Metalloinvest demonstrated robust financial and operational results for 2012, maintaining its leading industry positions in the Russian ferrous sector in terms of EBITDA and profitability,” Metalloinvest's CEO Eduard Potapov said.
“The 2012 results reaffirmed that we had chosen the right strategy which enables us to maintain efficient operations in the adverse market conditions.”
