The company’s revenue decline was mainly due to lower prices for steel, iron ore and coking coal.
Businessman Rinat Akhmetov’s Metinvest metallurgical holding completed 2023 with a consolidated net loss of $194 million. This is confirmed by the financial report published on the company’s website on Monday, March 18.
It is noted that over the year the holding loss decreased 10.3 times. In 2022, this number will be minus $2.193 billion.
The company’s revenue is down 11% over the past year compared to 2022 – to $7.397 billion. EBITDA was down 54% YoY – to $861 million.
“The reduction in revenue is mainly due to lower prices for steel, iron ore and coking coal. In addition, the volume of cargo has decreased as a result of the suspension of production at the Mariupol metallurgical plants,” the statement said .
GMK Center chief analyst Andrey Tarasenko said that the decline in Metinvest’s financial results is due to the deterioration of the situation in world markets.
“Flat rolled products in the EU fell in price by 20-25%, like coking coal. At the same time, the price of iron ore remained at the same level thanks to the strong production rate in China. This year we expect a decrease in the price of iron ore products by 5%, because the trend in China has changed and local factories are reducing production volumes,” he said.
According to Tarasenko, we can expect a modest reduction in rental prices of about 5-10%, as raw materials and energy become cheaper.
“The EBITDA margin of the company’s steel division is 3% in 2023, that is, the maintenance reserve is minimal. Therefore, lower prices on world markets may negatively affect the volume of exports of metallurgical products from Ukraine against the backdrop of expensive logistics ,” added the analyst.
Earlier it became known that by the end of 2023, Metinvest enterprises reduced the production of steel and cast iron by 31% – to 2.03 million tons.
It was also reported that over the past year, Metinvest transferred 14.6 billion hryvnias in taxes and fees to the budgets of all levels.
Source: korrespondent
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