Metalloinvest’s revenues dropped by 14.2pc to $1,497mn in Q3 and in the nine-months (Jan-Sep) fell by the same percentage to $4,572mn from the prior year amid a slump in global economic activity that affects the structure of markets, lowered prices and raised the company’s transportation costs. The Company’s EBITDA fell by 18.6pc to $705mn in Q3 and was down by 22.8pc to $1,632mn for the nine-months period from the prior year. The decline was largely due to a drop in the Mining Segment with higher transportation costs and lower selling prices for iron ore.
Metalloinvest’s EBITDA margin declined by 2.1 percentage point to 38.3pc in Q3 and by 4 percentage point to 35.7pc for the nine-months from the prior year. Net income dropped by 52.1pc to $222mn in the quarter and 49.3pc in the Jan-Sep period to $752mn from the prior year, primarily due to changes in rubble exchange rates applied for the company’s foreign currency debt in the periods.
In the nine-months period, the company’s pellet production fell by 2.2pc and HBI/DRI output dropped by 2.4pc as reported by Davis Index. Key development during the period include commencement of pilot production of premium pellets for metallisation at MGOK. The company also plans to upgrade its HBI plant in Lebedinsky.