NLMK increased its income by 30% this year
NLMK, which specializes in ferrous metallurgy, has increased its net income by 30 percent this year.
The income of NLMK at the end of this year went plus of 385 million US banknotes, this figure was twice as much as in the previous year. At one time, this led to a decrease in net profit of production to 0.4, compared with EBITNA.
On the last day of October, in the Russian capital, NLMK's press office issued a statement. It became known that the internal income of an industrial organization for the reporting period of 2016 increased significantly. The total amount was 385 million in relation to the accounting time of the past 2015.
The increase in demand for products increased to 7 percent when compared to the previous quarter of 2016. The proceeds of NLMK's holding in dollar terms increased to 19 percent. This was the reason for the company's revenue growth of $ 2.2 billion.
Based on the results of the analysis, the basic profit (EBITDA) values approached 46 percent. The financial strength of the company reached a level of 30 percent, which was the apotheosis of the second quarter of 2016.
The efficiency and success of such an element of the international market as "foreign rolling assets" in the outgoing year reached its apogee and amounted to 18 percent.
More than half a year of sales, in 2016, the demand for metallurgy of NLMK went down by 2 percent. In terms of raw materials, this figure was 12.3 million tons of steel.
Unfavorable conditions on the market in the period from January to September caused a decline in demand. In this difficult period for the company, revenue fell by 11 percent. That is equivalent to 5-6 billion dollars of losses.
The EBITDA rate in this quarter collapsed by 13 positions. The company's financial liabilities were partially repaid to 700 million. When comparing indicators with 2015, this is approximately 37 percent.
The prospect of profitability growth provides the necessary confidence for NLMK. Although the company's specialists prepare for hard times in connection with the seasonal decrease in consumption of products.
Also, the company is preparing by the end of November the launch of a new pelletizing line at Stoilensky GOK, which will completely remove the issue of iron ore pellets.
"Due to effective work, the cost of production began to decrease, which will strengthen the group's position on the world stage," commented NLMK's financial director Grigory Fedorishin.
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