NLMK Group cut steel production by 15% in H1
Moscow. September 30. INTERFAX – NLMK Group (flagship asset – Novolipetsk Steel) cut steel production by 15% year-on-year in the first half of 2024, to 7.4 million tons, according to the issuer’s report.
The group’s sales of metal products decreased by 11% year-on-year in January-June, to 8 million tons.
The company explains the decrease in indicators by the sale of long products assets.
As reported, NLMK Group’s net profit under IFRS in the first half of 2024 amounted to RUB 81.647 billion, compared to RUB 91.752 billion a year earlier (a drop of 11%). In the second quarter, net profit fell by 1.6 times compared to the same indicator a year earlier and amounted to RUB 37.328 billion. The group’s revenue for the reporting period increased by 17% y/y to RUB 517.789 billion. In the second quarter, revenue was at the RUB 267.554 billion mark (RUB 254.377 billion in the second quarter of 2023).
The group’s EBITDA in January-June amounted to RUB 156.3 billion against RUB 144.1 billion a year earlier (+8.4%), EBITDA margin was 30%, which is 2 p.p. lower than the figure in the first half of 2023, according to NLMK’s half-year report.
Free cash flow amounted to RUB 68.9 billion in the reporting period, having changed insignificantly compared to RUB 68.1 billion a year earlier.
The net debt/EBITDA ratio in January-June was negative 0.17x (minus 0.09x a year earlier)