Mechel made a profit in Q2 2015 for the first time since 2012

​In Q2 2015 Mechel for the first time since 2012 made a net profit under US GAAP of $34 mln. Mechel’s net loss in H1 2015 fell by 63% to $239 mln against H1 2014.

The improvement of financial results in H1 is connected with the reduction of production expenditure on the background of the rouble’s weakening growth of production volumes and sale of a coal company Mechel Bluestone in the USA in February 2015. Previously Mechel assesses the effect from the sale of Mechel Bluestone at over $300 mln.

Mechel’s revenue in H1 2015 fell by 34% to $2.27 bln. In H1 the devaluation of the national currency had the major impact on the revenue fall as the major part of the revenue is in roubles. But the quarterly revenue showed a growth.

EBITDA rose 49% to $390 mln due to the reduction of production expenditure in dollars. Profitability by EBITDA made up 17.2% against 7.6% a year earlier.