Metalloinvest results for Q1 2015

In the first quarter of 2015, the world's leading manufacturer Metalloinvest achieved net income of $ 177 million, compared with a net loss of $ 542 million in the previous quarter. As of March 31, 2015, the company's total assets were $ 7,016 million, down 3.4 percent from $ 7,266 million at December 31, 2014, and the company's capital expenditures reached $ 94 million.

In the 1st quarter of 2015, iron ore production amounted to 9.7 million tonnes, practically unchanged compared to the results of the 4th quarter of 2014. Pellet production for the reporting period increased by 2.8 percent against a quarterly comparison to 5.8 million tonnes. Metalloinvest increased HBI /DRI output by 6.3 percent to 1.4 million tonnes due to the completion of modernization and overhaul.

In Q1 2015, hot metal output was 0.6 million tonnes, down 0.8 percent qoq. During this period, the company produced 1.1 million tonnes of steel, down 1.9 percent qoq. However, this decrease was largely due to the calendar decrease in the number of days compared to Q4 2014.

The company's revenue in Q1 2015 was $ 1.238 million, down 2.0 percent qoq against $ 1.263 million in Q4 2014. In Q1 2015, EBITDA increased by 7.0 percent qoq to $ 458 million compared to $ 428 million in Q4 2014. EBITDA in the mining and steel segments was 57 percent and 39 percent, respectively, of total EBITDA.

EBITDA margin increased to 37.0 percent in Q1 2015 compared to 33.9 percent in Q4 2014. The improvement in profitability of Metalloinvest was due to a 5.5% qoq decrease in the cost of goods sold, mainly denominated in rubles.