SynopsisRussian steel giant Severstal released its H1 2023 results, reporting a net profit of RUB 105.27 billion, down by 10.5% compared to the same period last year. Sales revenues also decreased by 9.9% year-on-year, totaling RUB 339.43 billion, primarily due to lower average selling prices. Despite these challenges, Severstal's crude steel output showed promise, rising by 6.1% year-on-year to 5.65 million mt in H1 2023.ArticleSeverstal, one of Russia's leading steelmakers, recently unveiled its financial and operational results for the first half of 2023. These figures provide insights into the company's performance in a dynamic global steel market.In the first half of the current year, Severstal achieved a net profit of RUB 105.27 billion (equivalent to $1.09 billion), a decrease of 10.5% when compared to the same period in the previous year. This decline can be attributed to various factors, including fluctuations in steel prices and market conditions.Sales revenues for Severstal in H1 2023 also faced headwinds, decreasing by 9.9% year-on-year to RUB 339.43 billion ($2.53 billion). The reduction in sales revenues can largely be attributed to the impact of lower average selling prices, a challenge faced by many players in the steel industry.Severstal's earnings before interest, taxes, depreciation, and amortization (EBITDA) experienced a year-on-year decrease of 11.5% in H1 2023, amounting to RUB 118.46 billion ($1.23 billion). Despite this decline, Severstal maintained a reasonable EBITDA margin of 35% during this period, compared to 36% in the first half of the previous year.Amidst these financial challenges, there are bright spots in Severstal's operational performance. The company's crude steel output in the first half of 2023 totaled 5.65 million metric tons, marking a robust increase of 6.1% year-on-year. This growth demonstrates the company's commitment to maintaining and expanding its production capacity.In terms of sales, Severstal achieved total steel sales of 5.46 million metric tons in H1 2023, reflecting a noteworthy increase of 9.4% year-on-year. However, sales of semi-finished products, totaling 580,000 metric tons, experienced a decrease of 9.9% compared to the previous year. These figures showcase Severstal's ability to navigate evolving market conditions and meet customer demand.ConclusionSeverstal's H1 2023 results present a mixed picture of challenges and opportunities. While the company faced a decline in profitability due to lower steel prices, its robust production and sales figures indicate resilience and adaptability in a competitive steel industry. Severstal's ability to balance these dynamics will be crucial as it continues to navigate the complex global steel market.