Mechel 1H 2011 net profit soars more than 300%

Russian steelmaker and miner, Mechel, has posted a 1H 2011 net income of $501.02 million under US GAAP.

The net result is up 314.7% from the 1H 2010 net income of $120.8 million, with 1H adjusted EBITDA up 50% year on year to $1.179 billion, as 1H revenues rose 47.9% year on year to $6.406 billion.Mechel posted a 2Q net income of $191.9 million, down 37.9% quarter on quarter, with 2Q adjusted EBITDA up 8% quarter on quarter to $612 million, on the back of an 18.3% quarter on quarter rise in revenues to $3.472 billion.Mechel CEO Yevgeny Mikhelnoted the impact of its efforts to resume production volumes had underpinned the 1H outcome, with mining volumes and sales benefitting.“The company was quite successful in this period. Despite a few difficulties we had to contend with early in the year, we concentrated on restoring production volumes in our mining segment while preserving high capacity utilization rates in steel and other segments. Our efforts were also directed to the implementation of the company’s ambitious investment program. “As a result, in the second quarter we demonstrated a growth in mining volumes and sales of nearly all our products, which, when combined with fairly favorable market conditions, enabled us to improve the financial results of the previous period.”