Ukrainian steelmaker Metinvest BV's adjusted EBITDA for the first nine months of 2019 plummeted 39% year over year to US$1.23 billion from US$2.02 billion as lower average steel prices weighed on its metallurgical segment.
Total revenue from the company's mining and metallurgical segments amounted to US$8.49 billion, according to a Dec. 17 trading update, down 6% year over year following a 46% surge in the same period of 2018.
Costs rose in the metallurgical segment as revenue fell 11% to US$6.86 billion, reducing its EBITDA to just US$41.0 million from US$1.13 billion in the first nine months of 2018. Metinvest attributed the result to higher spending on raw materials, logistics and personnel costs, as well as a 2.2% appreciation of the Ukrainian hryvnia against the U.S. dollar year over year.
As a result, the metallurgical segment's share of EBITDA contracted to 3% from 54% in 2018.
In contrast, the mining segment's EBITDA rose 29% year over year to US$1.22 billion as its top line grew 21% to US$1.64 billion on higher sales volumes and iron ore product prices.
Capital expenditure rose 24% during the period to US$770 million, with the mining segment accounting for 49% of total investments, up from 36% in the same period of 2018.
Metinvest's total debt was US$2.66 billion as of Sept. 30, down 3% from US$2.74 billion as of Dec. 31, 2018.