Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for 2013 according to International Financial Reporting Standards (IFRS).
In 2013, MMK saw a net loss of $2.429 billion compared to a net loss of $87 million in the previous year. In the given year, MMK's revenues declined by 12 percent to $8.190 billion, driven by reduced sales volumes from Magnitogorsk, down three percent, and from MMK Metalurji, down 26 percent, and by a decline in the average sales price, all year on year.
MMK Group's EBITDA for 2013 was $1.223 billion, down 10 percent year on year. EBITDA was affected by a number of factors, including a one-off cash gain of $131 million recognised in the first and second quarters of 2013 from the sale of MMK-Trans.
MMK Group's total debt declined by $700 million during 2013 and stood at $3.180 billion as of December 31, 2013.
MMK Group's free cash flow (FCF) in 2013 reached $310 million, generating a yield of 13 percent.
As for the first quarter of the current year, MMK expects an increase in volumes of output and sales of commercial steel products from Magnitogorsk due to an improvement in the company's sales markets.
