Ukraine’s Metinvest sees profit falling after 2011 jump
* Sees 2012 results closer to 2010 level
* FY revenue $14.19 billion vs $9.39 billion in 2010
* Growth driven by sharp expansion in steel operations
* Steel makes EBITDA loss, group earnings mostly in iron ore
(Writes through with comments by Metinvest CFO)
KYIV, April 17 (Reuters) – Ukrainian mining group and steel
producer Metinvest said its net profit was likely to drop in
2012 after quadrupling to $1.85 billion in the prior period, hit
this year by weaker iron ore prices.
Iron ore prices plummeted in September-October 2011 after
rallying for the previous three quarters, helping boost the
company’s earnings.
“Given the current situation on the market, we think 2012
will be much closer to 2010 than 2011 (in terms of financial
results),” Metinvest’s Chief Financial Officer Sergiy Novikov
told Reuters.
The privately-held firm, majority-owned by Ukraine’s richest
man Rinat Akhmetov, increased its revenue to $14.19 billion in
2011 from $9.39 billion in 2010, its IFRS financial report
showed, driven by a sharp expansion in the steel operations
partly due to an acquisition.
However, the steel segment was loss making at the adjusted
EBITDA level and group earnings were mostly generated by the
iron ore segment.
Continued…