Severstal Reports 43% Decline in Net Profit in 2020
Russian steel maker Severstal has announced its financial results for the fourth quarter and twelve months of 2020. Severstal CEO Mr Alexander Shevelev said “In a challenging year under the auspices of the pandemic, our strategic priorities and transformational goals have never been more relevant and relevant our continued focus on cost reduction, a commitment to customer satisfaction, and the pursuit of new business opportunities - have enabled us to keep our business running smoothly throughout all the time and save jobs, as well as continue to implement the long-term development plan.”
The Group's revenue decreased in 2020 by 15.8% YoY to USD 6,870 million. The decrease in revenues compared to the previous year was due to lower prices for steel products and a decrease in sales for the period.
Group EBITDA decreased in 2020 by 13.7% YoY to USD 2,422 million, mainly reflecting a decline in revenues, partially offset by a decrease in cost of sales. EBITDA margin increased YoY to 35.3% as compared to 34.4% in 2019
Group net profit decreased in 2020 by 42.5% YoY to USD 1,061 million