Severstal reported 2016 financial results

Severstal has announced its financial results for the 2016. According to its press release, Severstal’s revenue decreased 7.5% year-on-year to $5,916 million (2015: $6,396 million) primarily reflecting a substantial decline in average steel selling prices at the beginning of 2016, as a result of the net decline in global benchmarks and a marginal decline in sales volumes.

EBITDA decreased 8.8% year-on-year to $1,911 million (2015: $2,096 million) as a result of lower sales volumes and a decline in prices, which was partially offset by lower input operating costs.

The Company generated $1,021 million of free cash flow which is 34,2% year-on-year lower than in the previous year (2015: $1,552 million) partially impacted by the weaker Q1 2016 operating performance which resulted in negative free cash flow generation.

Severstal’s prudent approach to CAPEX was maintained with investment of $525 million, 19.3% higher year-on-year (2015: $440 million).