It is reported that Azovstal an integrated iron and steel works and subsidiary of Metinvest reported a 2.7x YoY plunge in EBITDA to USD 9.7 million in January to September 2011 in spite of a 37% YoY advance in its top line to USD 2.96 billion.

Its bottom line was USD 22.5 million in the red for January to September 2011 compared to a net profit of USD 10.5 million for the same period last year.

According to Phoenix-Capital analyst “The news is negative for AZST. Azovstal lackluster financial performance for January to September 2011 was caused by exceptional losses in Q3 2011. EBITDA dropped to minus USD 38.6 million from positive USD 50.3 million in Q2 2011. Net profit of USD 11.7 million in Q2 2011 turned to a net loss of USD 3.4 million in Q3 2011. Such adverse results were partly caused by a continuing margin squeeze, in which the bulk of profit in the industry is earned in the mining sub sector rather than finished steel production. Secondly, Azovstal sales through mining subsidiaries presumably left margins there. The North and Ingulets Ore and Processing Plant subsidiaries accounted for 24.4% of Azovstal total revenue in Q3 2011 double that of H1 2011.”

(Sourced from www.phoenix-capital.ua)