Rising metals prices boosted PJSC Magnitogorsk Iron & Steel Works' financial results in the fourth quarter of 2017, pushing profit up year over year to US$375 million from US$208 million a year ago, the company said Feb. 6.
EBITDA climbed to US$592 million from US$456 million, and revenue increased to US$1.95 billion from US$1.55 billion.
Fourth-quarter CapEx grew year over year to US$237 million from US$185 million due to the planned implementation of investment projects, including launching equipment procurement for sinter plant No. 5.
Based on the financial results, MMK recommended a pretax dividend for the fourth quarter of 80.6 Russian kopecks per share, or about US$160 million based on the current exchange rate.
For full year 2017, MMK's revenue increased 34% year over year to US$7.55 billion driven by a growth in average sales prices of 33.1% to US$143/tonne, a stronger ruble and a recovery in domestic sales. EBITDA for the year was up almost 24% to US$2.03 billion, and profit climbed to US$1.19 billion from US$1.11 billion in 2016.
Free cash flow faltered slightly, declining nearly 5% to US$694 million as a result of a planned increase in CapEx.
MMK's total debt stood at US$544 million at the end of the fourth quarter, while cash increased by US$248 million year over year to US$556 million.
Revenue from the coal segment stood at US$90 million in the fourth quarter, and the company plans to significantly increase coal output in 2018.
In January, the company reported a 5.3% yearly rise in 2017 steel production to 10.2 million tonnes, while crude steel output rose 2.5% to 12.9 million tonnes. Finished steel had a steady output of 11.33 million tonnes, and sales for the period increased 1.4% year over year to 11.62 million tonnes.
As of Feb. 5, US$1 was equivalent to 56.82 Russian rubles.
