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Evraz production assets post 230% RAS net profit rise in Q3

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MOSCOW, November 16 (RIA Novosti) - Evraz Group [LSE: EVR], Russia's largest coal and steel producer, said Thursday the net profit of its main production assets calculated to Russian Accounting Standards climbed 230% year-on-year in the third quarter, to 12.4 billion rubles ($464 million).

The company said Urals-based iron and steel plant NTMK boosted its net profit by 95.7% year-on-year to 5.1 bln rubles ($191 mln) in the reporting period.

The ZapSib iron and steel plant in west Siberia saw a 672.2% rise in its net profit to 5 billion rubles ($187 million).

Evraz Group attributed the strong results to increased sales volumes and higher prices in the domestic and export markets, while rising prices of iron ore were partially offset by lower prices of coking coal, compared to last year.

"ZapSib's outstanding results are largely attributable to a significant rise in slab sales following the commissioning of a slab caster in November 2005, and growth in construction product sales, driven by robust demand on the Russian market," the company statement said.

Third-quarter net profit growth of the Urals-based KGOK and VGOK mining and processing works jumped more than fivefold, to 1.9 billion rubles ($71 million) and 311 million rubles ($12 million), respectively, on the back of higher prices and larger production volumes at KGOK. Prices gained an average of 30-45% year-on-year, and more than 10% on the previous quarter.

In August, Evraz Group, which produced nearly 14 million metric tons of steel in 2005 and posted revenue of $6.5 billion, sold 41% of its stock to U.K.-based Millhouse Capital, which manages Russian billionaire Roman Abramovich's assets. The company did not disclose the price, but experts valued the deal at $2.7-3 billion.

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