Mechel's power segment's revenue from external customers in Q2 2012 comprised USD 174.7 million or 6% of consolidated net revenue, a decrease of 28.2% compared with the segment's revenue from external customers of USD 243.4 million or 8% of consolidated net revenue in Q1 2012.

The operating loss in the power segment in Q2 2012 amounted to USD 56.2 million or 19.5% of the total segment's revenue in the same period compared to the operating income of USD 24.9 million or 6.6% of the total segment's revenue, in Q1 2012. The adjusted EBITDA in the power segment in Q2 2012 decreased by 99.0% totaling USD 0.3 million, compared to the adjusted EBITDA of USD 27.5 million in Q1 2012. The adjusted EBITDA margin for the power segment in 2Q2012 amounted to 0.1% compared to 7.3% in Q1 2012. Depreciation and amortization in power segment in Q2 2012 decreased by 12.2% comparing with the Q1 2012 from USD 4.1 million to USD 3.6 million.

Mr Yuri Yampolsky CEO of Mechel Energo OOO said that "Quite expectedly, the Q2 2012 results appeared to be slightly weaker QoQ due to the seasonal decline in demand. What is worth mentioning however is that in spite of the low demand, the segment's operational performance is currently better than the relevant targets. Also, periods of low capacity utilization are traditionally used to complete repair and maintenance arrangements and get ready for the heating season in autumn and winter."

Source - Mechel

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