Ukrainian metallurgical enterprises reduce their losses

Last year, metallurgical enterprises managed to reduce the losses in the industry by 22% as compared with the previous year (from 15.7 billion hryvnias to 12.2 billion hryvnias), despite the fall of the metallurgical enterprises’ net income by 7.8% (to 141.3 billion hryvnias), decrease in price of rolled metal by 7.7% and the production at the level of 2012, Metallurgprom reports.

They managed to reduce the burden of losses due to the rapid cost reduction by 9.9% against a decline of incomes by 8.1 %, general director of Metallurgprom Alexander Zrazhevsky reported. Analyst of Dragon Capital Denis Sakwa speculated that costs of metallurgical plants could decrease because of continued fall of prices for coking coal and coke (last year, the price of these products fell by 17% and 16% respectively), as well as due to the substitution of gas by coal through introduction of pulverized coal injection technology.

Officially, only two steelmakers reported financial performance of the year - Azovstal and Mariupol metallurgic plant n.a. Ilyich. Both are controlled by Metinvest of Rinat Akhmetov. But only the first metallurgic plant reported a reduction of the losses by results of 2013 (from 2.7 billion hryvnias to 2.5 billion hryvnias), while the second one, on the contrary, increased them, although only slightly - from 2.8 billion hryvnias to 2. 9 billion hryvnias.

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