Severstal first half net loss down 37.5 pct to $593 mln

Severstal, Russia's largest steel maker, posted a 37.5 percent fall in its January-June net loss to $593 million to IFRS, Severstal said on Monday.

Severstal, Russia's largest steel maker, posted a 37.5 percent fall in its January-June net loss to $593 million to IFRS, Severstal said on Monday.

Severstal's revenues in the first six months of 2010 jumped 54 percent to $7.4 billion compared to the same period last year, the company said in a statement.

The net loss for the first half of 2010 includes a loss from the discontinued operation of the Lucchini segment of $1 billion. The loss-making Italian business was sold to Severstal's controlling shareholder Alexei Mordashov in June for one euro. The first half report also includes a further impairment loss of $207.9 million accrued in the second quarter of 2010.

The company's January-June EBITDA reached $1.4 billion compared to a loss of $30 million last year, while EBITDA margin amounted to 19.6 percent.

The company's profit from operations totaled over $1 billion compared to a loss of $426 million last year. Severstal's profit from continuing operations reached $470 million compared to the loss of $803 million in the first half last year.

Net debt, excluding Lucchini, was $4.3 billion, up from $3.6 billion as of December 31, 2009.

The Severstal board is not recommending a dividend payment for the second quarter of 2010 but anticipates resumption of dividend payments in the foreseeable future, Severstal said.

MOSCOW, September 6 (RIA Novosti)