| | Jan to Sep'11 | Jan to Sep'10 | YoY |
| Revenue from external customers | 30,78,513 | 21,57,884 | 42.70% |
| Intersegment sales | 7,88,336 | 5,94,024 | 32.70% |
| Operating income | 11,93,968 | 8,39,109 | 42.30% |
| Net income | 6,30,826 | 5,34,692 | 18.00% |
| Adjusted EBITDA | 14,31,003 | 10,51,705 | 36.10% |
(In’ 000 USD)
| Q3'11 | Q3'10 | QoQ | |
| Revenue from external customers | 11,46,577 | 11,03,812 | 3.90% |
| Intersegment sales | 2,50,884 | 2,77,192 | -9.50% |
| Operating income | 4,27,457 | 4,74,455 | -9.90% |
| Net income | 14,206 | 3,25,945 | -95.60% |
| Adjusted EBITDA | 5,11,845 | 5,57,962 | -8.30% |
| Production: Product name | Jan to Sep'11 | Jan to Sep'10 | Change |
| Coal (run-of-mine) | 19,813.50 | 20,717.40 | -4% |
Mining segment revenue from external customers in Q3 2011 totalled USD 1.15 billion or 35.7% of the consolidated net revenue an increase of 3.9% over net segment revenue from external customers of USD 1.10 billion or 31.8% of the consolidated net revenue in Q2 2011.
The operating income in the mining segment in 3Q 2011 decreased by 9.9% to USD 427.5 million or 30.6% of total segment revenue, compared to the operating income of USD 474.5 million or 34.4% of total segment revenue for the Q2 2011. The adjusted EBITDA in the mining segment in Q3 2011 went down by 8.3% and amounted to USD 511.8 million compared to segment adjusted EBITDA of USD 558.0 million in Q2 2011. The adjusted EBITDA margin for the mining segment in Q3 2011 was 36.6% compared to 40.4% in Q2 2011. Depreciation depletion and amortization in the mining segment amounted to USD 82.3 million which is 3.9% more than USD 79.2 million in Q2 2011.
Mr Boris Nikishichev CEO of Mechel Mining Management Company commented on the mining segment operating results that “In spite of a deteriorating pricing environment in the third quarter, the mining segment managed to show a revenue increase as compared to the second quarter results. This was possible due to capacity restoration and development work in previous periods that enabled production and sales growth of almost all products in the third quarter. Production growth and cost control measures positively resulted in a decrease of production cash costs at all Russian coal mining subsidiaries.”
He said that “In the third quarter we continued to develop our production assets and key strategic projects at all mining subsidiaries. Our largest achievement was the launch of the first stage of Elga open pit, the significance of which is hard to overestimate. With Elga reaching full capacity, Mechel will substantially reinforce its positions among leading world metallurgical coal produces. Elga has already produced some 200 thousand tonnes of coal. Oxidized coal is dispatched to end customers. Recently, coking coal production has started as well. We've already received the first industrial washing results that confirmed the high quality of Elga coking coal. We are going to further develop the mining segment's resource base, creating a solid platform for increased production of high-value coal.”
