PAO Severstal on Feb. 2 said its net profit in 2016 jumped to US$1.62 billion from US$562 million in 2015, mainly due to a foreign exchange gain of US$483 million, compared to a US$624 million forex loss a year ago.
Group EBITDA fell 8.8% on a yearly basis to US$1.91 billion, attributed to lower sales volumes and lower steel prices, which were partially offset by lower operating costs.
Revenue likewise dropped 7.5% to US$5.92 billion primarily reflecting a substantial decline in average steel selling prices at the beginning of the year, driven by a net decline in global benchmarks and a marginal decline in sales volumes.
Full year CapEx was US$525 million, up 19.3% year over year.
For the fourth quarter of 2016, the Russian company booked a net profit of US$313 million, falling 27% quarter over quarter. This included asset impairments of US$115 million and an US$8 million loss on disposal of property, plant and equipment, as well as a gain of US$47 million related to forex translation reserves of disposed foreign subsidiaries.
Revenue increased 4% over the 2016 third quarter to US$1.65 billion driven by higher steel product sales volumes on the back of strengthening domestic demand as well as sales to export markets.
Quarterly EBITDA dropped 9.6% to US$528 million, compared to third-quarter EBITDA of US$584 million, mainly because of higher operating costs.
The board of Severstal recently recommended a 2016 dividend of 27.73 Russian rubles per share, up from 20.27 rubles per share proposed a year earlier.
As of Feb. 1, US$1 was equivalent to 60.16 Russian rubles.