Metalloinvest announces its financial results for the first half of 2011

Metalloinvest, a leading global iron ore and HBI producer based in Russia, announces its financial results for H1 2011.

KEY FINANCIAL HIGHLIGHTS

- Revenue increased by 31% h-o-h to USD 5,132 million

- Operating profit amounted to USD 1,487 million, implying an increase of 34% h-o-h

- EBITDA increased by 44% h-o-h to USD 1,982 million

- EBITDA margin amounted to 39% vs. 35% in H2 2010

- Net Income increased by 45% h-o-h to USD 985 million

KEY CORPORATE HIGHLIGHTS

- Lebedinsky GOK, JSC, OEMK, JSC and Holding company Metalloinvest, JSC raised pre-export loans in the amount of USD 3.1 million for the period from 5 to 7 years.

- Andrey Ugarov was appointed First Deputy General Director - Director for production of managing company METALLOINVEST LLC. The position was created to enhance the management of production vertical and increase the efficiency of the enterprises.

- Three independent directors were elected to the LLC MC Metalloinvest Board of Directors: Kirill Aladyshev, Nikolai Krylov and Andrey Musatov.

Pavel Mitrofanov, Deputy CEO and Chief Financial Officer, comments on the Company’s financial results: “The Company demonstrated solid performance in key financial metrics in H1 2011. We have achieved strong results due to a substantial increase in iron ore production volumes, a diversification of the client base and growing export of products to rapidly developing Asian markets, predominantly China, as well as the management efforts to control production costs. At the same time, the Company continues to develop its key investment projects aimed at increasing high value-added iron ore output”.
 

KEY FINANCIAL RESULTS
USD mn H1 2010 H2 2010 H1 2011 y-o-y h-o-h
Revenue 3 324 3 909 5 132 54% 31%
Operating profit 952 1 112 1 487 56% 34%
EBITDA 1 215 1 373 1 982 63% 44%
EBITDA margin 37% 35% 39% - -
Net Income 520 679 985 89% 45%
 

Revenue increased by 31% h-o-h to USD 5,132 million.

Operating profit amounted to USD 1,487 million, implying an increase of 34% h-o-h.

EBITDA increased by 44% h-o-h to USD 1,982 million with EBITDA margin at 39%.

Net Income increased by 45% h-o-h to USD 985 million.

Cash inflow from operating activities in H1 2011 amounted to USD 1,238 million, implying an increase of 37% h-o-h, which was due to growth of profit before tax to USD 1,359 million (+50% h-o-h).

The Company’s cash and cash equivalents on the balance increased to USD 406 million as at the end of H1 2011.

The Company continues the policy of gradual debt reduction and extension of debt maturity.