Severstal sees a 49% slump in half-year profit

Russian Severstal, one of the world’s leading vertically integrated steel and steel-related mining companies, has announced its Q2 & H1 2012 financial results.

Net income of Severstal for the first half of the year plummeted by 49.1% to $582 million versus $1.143 million a year ago. O2 profit totaled $155 million, a 63.7% decline quarter-on-quarter, the Company statement said.

Half-year revenue slid 2.2% to $7.397 million (vs $7.566m in H1, 2011). EBITDA fell 31.9% to $1.226 million. Profit from operations for the period totaled $866 million (-41.1%).

A 63.7-percent drop in second-quarter net income to $155 million (vs $427m in Q1, 2012) was attributed to FX losses of $143 million in Q2, compared to FX gains of $122 million in Q1 and the spin-off of Nordgold, which contributed to Q1 profit, the Company report said.

EBITDA for Q2, 2012 was up 18.1% from the first quarter of the year. Q2 revenue climbed 1.1% to $3.718 million