Page 140 - RusRPTSept23

9.2.12 Mines and Minerals - steel & iron
Russia’s steel consumption rose 8% on the year to 23.19mn tonnes in January–June, steel producer Severstal said in a statement on August 7. The construction industry’s demand for metals rose 11% on the year to 18.18mn tonnes in the period thanks to state support of social and commercial realty construction and stable demand for warehouses. Steel consumption in machinery construction grow 5% to 2.36mn tonnes thanks to recovery of production of cars and railway machinery. Steel consumption in the energy sector showed a 6% decline due to a temporary decrease in demand for large-diametre pipes as the projects launched in 2021–2022 were completed. End
The net profit of Russian metals holding company Metalloinvest plunged by about 70% on the year to 37.415bn rubles in January–June, as calculated under International Financial Reporting Standards (IFRS), the company said in a report late on August 30. Revenue shrank by 33.5% on the year to 219.164bn rubles in the period, while earnings before interest, taxes, depreciation, and amortization (EBITDA) went down by 38.4% to 100.4bn rubles. Cash and equivalents on the company’s deposits plummeted to 8.4bn rubles as of the end of June from 21.8bn rubles as of the beginning of 2023.
9.2.13 Mines and Minerals - fertilisers
The net profit of Russian fertiliser producer PhosAgro plummeted by 67.8% on the year to 41.497bn rubles in January–June, the company said in a statement late on August 30. Revenue shrank by 36.8% to 212.752bn rubles because of lower international prices for fertilisers as compared with the record prices at the beginning of 2022. The adjusted net profit excluding profits or losses from currency exchange differences decreased by 48.6% to 55.772bn rubles. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 28.8% to 96.518bn rubles, but the EBITDA margin rose to 45.4% from 40.3% because of the efficiency of cost cuts and the growth of sales of products with high margin. Net debt amounted to 200.179bn rubles as of the end of June. The ratio of net debt to adjusted EBITDA rose to 1.09x from 0.68x as of June 30, 2022 due to the ruble’s depreciation against the US dollar and revaluation of the US dollar’s share in the company’s debt, PhosAgro said.
9.2.14 Mines and Minerals - other
Rusal aluminium output rises by 1.2% to 1.91mn tonnes in 1H 2023.
Meanwhile, Rusal's adjusted net profit under IFRS in January - June 2023 decreased by 54.3% year-on-year and amounted to $315mn.
RUSSIA Country Report September 2023 www.intellinews.com