Severstal has announced its financial results for the 2016. According to its press release, Severstal’s revenue decreased by 7.5% YoY, to $5,916 million, primarily reflecting a substantial decline in average steel selling prices at the beginning of 2016, as a result of the net decline in global benchmarks and a marginal decline in sales volumes.

EBITDA decreased by 8.8% YoY to $1,911 million, as a result of lower sales volumes and a decline in prices, which was partially offset by lower input operating costs.

The company generated $1,021 million of free cash flow, down by 34,2% YoY, partially impacted by the weaker Q1 2016 operating performance, which resulted in negative free cash flow generation.

Severstal’s prudent approach to CAPEX was maintained with investment of $525 million, up by 19.3% YoY. (Metalinfo/Ukrainian metal)

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