NLMK Group Reports Financial Results or Q2 of 2021
NLMK SteelGuru

NLMK Group Reports Financial Results or Q2 of 2021

Russian steel maker NLMK Group’s EBITDA in Q2 2021 grew by 76% QoQ o USD 2.1 billion while EBITDA margin grew by 9 pp QoQ to

Russian steel maker NLMK Group’s EBITDA in Q2 2021 grew by 76% QoQ o USD 2.1 billion while EBITDA margin grew by 9 pp QoQ to 50%. Revenue grew by 44% QoQ to USD 4.1 billion, up 90% YoY, with an increase in steel product prices and production and sales volumes. NLMK Group CFO Mr Shamil Kurmashov said “In Q2 2021, steel prices continued to grow across all key markets. In the US and the EU, prices hit new highs. Steel product consumption grew due to the realization of deferred demand and government support measures. Steel capacity utilization rates reached pre-crisis levels as facilities that were stopped during the first wave of the pandemic were relaunched. The outstripping growth in steel consumption relative to production led to a decrease in inventories to all-time lows, which brought about a further increase in prices.”

Revenue grew by 51% YoY to USD 7.0 billion amid higher average sales prices and an increase in the share of finished products in the sales portfolio. EBITDA grew by a factor of 2.7 YoY to USD 3.2 billion due to the widening of the steel products/raw materials price spreads and the implementation of Strategy 2022 projects. EBITDA margin was 46%, +21 p.p. YoY

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