Novolipetsk Steel 9-month IFRS profit down 40%

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AK&M 22 October 2020 16:29

IFRS profit of NLMK for 9 months of 2020 decreased by 40% to $678 million from $1.14 billion a year earlier. Revenue fell by 17% to $6.86 billion from $8.24 billion, EBITDA dropped by 16% to $1.7 billion from $2.08 billion, the company informed.

IFRS profit of NLMK for the third quarter of 2020 decreased by 9% to $312 million from $343 million a year earlier. Revenue shrank by 13% to $2.23 billion from $2.57 billion, EBITDA by 11% to $579 million from $654 million.

Novolipetsk Steel is a leading Russian producer of high-value-added steel products. The plant accounts for about 18% of the total steel output in Russia and about 80% of all steel products of NLMK Group. The company's share in the domestic market of cold-rolled products is 27%, its share in the market of galvanized steel reaches 22%. In 2019, NLMK group signed a contract with Italy's Tenova for basic engineering and supply of the main process equipment for the construction of a fifth continuous hot-dip galvanizing line at the Lipetsk site. The new line will be used to make commercial quality galvanized products (required for construction and the manufacture of home appliances), cold-rolled IF steel products, as well as low-alloy, dual-phase and multiple-phase steel.