Basic earnings Metinvest B. V. has grown in 9 months by 21%
For the nine months, the Dutch company Minvest BV has achieved profit growth in the twenty-one percent. With the beginning of the year, the company managed to receive almost a hundred million dollars. Information was published in the company’s report on the preliminary results for fiscal year 2016.
In a report published the reasons which influenced positive dynamics of net profit. The underlying profit was significantly impacted by the increase in sales. The metallurgy segment, the company managed to increase sales by fifteen million U.S. dollars.
Because the company is closely linked with Ukraine, the devaluation of the Ukrainian currency also led to the end result.
In addition, decreased logistics costs for land and Maritime transport. However, this reason was slightly mitigated by higher expenditure on rail transport.
The net profit was influenced by the decrease in expenses for energy carriers. The cost of raw materials decreased following the fall in the cost of raw materials. As you know, this year significantly dropped the price of coking coal, scrap and ore.
However, according to experts, the profit could be even greater. To achieve maximum not allowed the fall of prices in mining and in the metallurgical segment. In addition, in the mining segment experienced a slowdown in sales.
The fixed margin for this fiscal year increased by seven percent compared to the same period last year. Now the difference between the cost and price of the product is twenty-two percent. Mining segment margin growth amounted to thirteen percent. Now she is twenty eight percent. In the steel segment margin is seventeen percent. This year the figure rose by five percent.
In the first six months the profit of the company amounted to seventy million dollars. Over the same period last year, the company incurred losses in the amount of one hundred sixty-six million. Now the profit has been equated with the figures for the first half 2015.
The shareholders of Metinvest Group are the company «Smart-holding» Vadim Novinsky and Rinat Akhmetov’s SCM Group. First owned seventy-one percent shares and twenty four the second. Both companies participate in the management of the company on the rights of the partners. Minvest BV is the Netherlands — based holding company.