UNIAN
International vertically integrated mining and steel group Metinvest, owned by Ukrainian billionaire Rinat Akhmetov, has seen its revenues decreasing by 38% in the first quarter of this year - to $1.8 billion, with EBITDA indicator at 61% - to $341 million, compared with the same period last year, according to the statement of the company’s press release based on the preliminary financial results.
"In the first quarter of 2015, the consolidated revenues of Metinvest have fallen by 38% compared to the same period last year. This is mainly due to lower sales of flat products - sales volumes amounted to $329 million, sales of long products stayed at $230 million, iron ore - $310 million, semi-finished products - $162 million, and those of coking products at $38 million," according to the press release. The metallurgical division of the Group accounts for 78% of external sales, against 76% in the 1st quarter of 2014, the mining division - 22% versus 24% in the 1st quarter of 2014.
The reduction in EBITDA was due to a reduction in costs of raw material resulting from lower consumption and decreased market prices due to the devaluation of the hryvnia, as well as increased costs on electricity due to higher tariffs.
As noted in the press release, these are the preliminary data which may differ from the final financial statement of the group, which will be prepared in accordance with the International Financial Reporting Standards.
Metinvest Group is an international vertically integrated mining and steel group of companies, which is the largest in Ukraine and one of the largest CIS producers of iron ore and steel.
Since mid-July 2014 the company’s branches that are located in the east of Ukraine have been operating with interruptions due to continuous fighting.
The main shareholders of Metinvest is SCM group of the Ukrainian businessman Rinat Akhmetov (71.24%) and Smart-Holding group of Vadim Novinsky (23.76%).
In 2014, the company’s net profit dropped by 2.5 times compared to 2013 year - to $159 million.