| | 9M 2011 | 9M 2010 | Change |
| Revenue from external customers | 5,66,087 | 4,67,854 | 21.00% |
| Intersegment sales | 3,80,502 | 3,04,388 | 25.00% |
| Operating income | 23,071 | 26,372 | -12.50% |
| Net income | 99 | 8,556 | -98.80% |
| Adjusted EBITDA | 33,520 | 38,935 | -13.90% |
In’000 USD
| Q3'11 | Q2'11 | Change | |
| Revenue from external customers | 1,64,132 | 1,76,845 | -7.20% |
| Intersegment sales | 1,12,750 | 1,24,290 | -9.30% |
| Operating loss | -10,288 | -176 | -5745.50% |
| Net loss | -13,374 | -6,721 | -99.00% |
| Adjusted EBITDA | -7,034 | 5,115 | -237.50% |
In’00 USD
| 9M'11 | 9M'10 | Change | |
| Electric power generation (ths. kWh) | 28,30,884.00 | 33,36,524.00 | -15% |
| Heat power generation (Gcal) | 47,90,664.00 | 47,81,765.00 | 0% |
In ‘000 tonnes
Mechel power segment’s revenue from external customers in Q3 2011 comprised USD 164.1 million or 5.1% of consolidated net revenue, a decrease of 7.2% compared with the segment’s revenue from external customers of USD 176.8 million or 5.1% of consolidated net revenue in Q2 2011.
The operating loss in the power segment in Q3 2011 amounted to USD 10.3 million, or 3.7% of the total segment revenue in the same period, an increase of 5,745.5% compared to the operating loss of USD 0.2 million or -0.06% of the total segment’s revenue, in Q2 2011. The adjusted negative EBITDA in the power segment in Q3 2011 went down by 237.5% totalling USD 7.0 million, compared to the adjusted EBITDA of USD 5.1 million in Q2 2011. The adjusted EBITDA margin for the power segment in 2Q 2011 amounted to2.5% compared to 1.7% in Q2 2011. Depreciation and amortization in power segment in Q3 2011 decreased by 9.08% comparing with the Q2 2011 from USD 5.29 million to USD 4.81 million.
Mr Anatoly Merzlyakov CEO of Mechel Energo noted that “The power segment results in the third quarter were lower compared to the previous quarter on the back of seasonal demand fluctuation for heat and electricity. In the third quarter substantial efforts were directed toward preparation works ahead of the new heating season. In particular, we carried out a substantial amount of repair and maintenance works and secured fuel stocks. The decrease in power generation in the third quarter influenced the cost side of the segment. However, we expect that with the start of the heating season and corresponding increase in production volumes the situation will stabilize, improving financial results of the segment.”
