The profitability of Severstal's growing
Second quarter net income of Severstal under IFRS rose by 29.6%, to 608 million USD. Comparison was made with analogous period of last year. Relative to I quarter of 2016 index increased more than twice. Net income for the first six months increased to 878 USD. Increased by 8.9% compared to 2015. Compared to II quarter 2015 revenues of Severstal declined by 12.5%, amounting to USD 1.58 billion. Relative to I quarter of 2016 increased by 44%.
Index EBITDA in the second quarter fell by 10.5% compared to the same period last year. In numerical terms, the figure reached USD 526 million. Profitability on EBITDA has increased to 33.3%. Relative to I quarter EBITDA increased by almost half. Profitability EBITDA increased by 8.4%. Free cash flow Severstal in the second quarter came to USD 342 million. In the first quarter the index had a negative value. The company’s net debt at the end of June amounted to USD 511 million. The ratio of this indicator to EBITDA in the second quarter fell to 0.3 from the previous 0.5 to the end of the first quarter of 2015.
In partnership Severstal quite successful. Company CHTPZ Group has held 20 th a coordinating Council, which was the anniversary. It took place on the territory of the Cherepovets metallurgical plant. At the meeting were summed up activities for the five month period of 2016. Discussed qualitative, quantitative and delivery. Also considered areas for further joint activities. Discussed joint activities that will improve the quality of the rolled products and tubular products.
According to company representatives, such meetings are necessary. They help in solving operational issues, building long-term relationships. The decision was made on the joint assessment of the results of operations for the production of biodiesel fuel. They are intended for operation in zones of tectonic faults. Been and the manufacturer TBD category X 100. The meeting was planned the next steps in the development of these products. The participants of the Council plan the update of the programme of technical cooperation. Programme will be developed to promote corrosion resistant products «Savarkar». Representatives of the parties noted the need for further meetings. They will provide mutually beneficial cooperation in the future.