NLMK Group witnessed a 19% growth in EBITDA in January-March.
In Q1 2017, NLMK Group was able to increase sales on the EU and US markets against a backdrop of higher internal demand; and to expand export deliveries of flats, offsetting the seasonal weakening in demand in Russia.
Group’s capacity utilization gained 1%, to 96%; sales climbed by 1% QoQ, to 3.7 million tons.
Stable sales and the uptick in prices for steel products supported by high prices for raw materials pushed revenue up by 10% QoQ, to $2.16 billion.
EBITDA grew by $100 million, to $618 million, $57 million attributable to gains from operational efficiency efforts and capex projects vs. the 2016 level. EBITDA margin expanded by 3%, to 29%.
Profitability growth and moderate capex in Q1 supported a 14% QoQ increase in free cash flow to $208 million.
Debt leverage is at a comfortable level, Net debt/EBITDA at a stable 0.4%. (NLMK/Ukrainian metal)