NLMK Group (MICEX and LSE: NLMK) is pleased to announce an EBITDA growth of 13% qoq to a record $915 m. Net income grew by 16% qoq to $581 m.
Q2 2018 key highlights
Comment from NLMK Group Deputy CFO Nelli Meshcheryakova:
“In Q2 2018, NLMK’s revenue grew by 11% qoq to $3.1 bn, driven by growth of sales, growth of sales prices and an improved revenue mix. 62% of steel products were sold in the Group’s home markets of Russia, the EU, and the US.
“Favorable market conditions enabled the Company to reach a ten-year high EBITDA of $915 m. The widening of steel product/raw material price spreads, an improved product mix, and gains from completed capex projects and operational efficiency programs were the key factors behind the growth of EBITDA this quarter. EBITDA margin was 29%.
“Operational efficiency gains totaled $39 m, gains from investment projects totaled $51 m. The cumulative impact from these projects and initiatives reached 10% of the quarter EBITDA.
“Free cash flow decreased qoq by 52% to $288 m, against the backdrop of a high Q1 base, and the temporary increase in working capital due to the growth of steel product sales volumes and prices.
“Net debt / EBITDA remained flat at 0.31x, one of the lowest ratios in the industry.”