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MMK - Magnitogorskiy Metallurgicheskiy Kombinat PAO News Story

$12.78 0.2  1.3%

Last Trade - 18/10/21

Sector
Basic Materials
Size
Large Cap
Market Cap £7.98bn
Enterprise Value £7.99bn
Revenue £6.44bn
Position in Universe 142nd / 1785

Weak demand to put pressure on Russian steelmaker MMK in Q4

MOSCOW, Oct 31 (Reuters) - Weak demand abroad and lower
domestic consumption will put pressure on Russian steelmaker
MMK's  MAGN.MM  financial results this quarter, it said on
Thursday, after reporting a 22% year-on-year fall in
third-quarter core earnings.
    Shares in MMK, controlled by Russian businessman Viktor
Rashnikov, however, rose by 2% in Moscow on Thursday after it
recommended a third-quarter dividend payment of $289 million,
equal to 100% of its free cash flow for the period.
    MMK "is seeing a decline in demand on export markets and a
seasonal weakening in the consumption of metal on the domestic
market amid a correction in steel prices, reflecting
unfavourable conditions on the global market", it said in a
statement.
    Despite these negative trends, MMK expects the price premium
on the domestic market compared with the export one to remain
high which will support its fourth-quarter results, as will
lower prices for key raw materials.
    It said it recommended a third-quarter dividend of 1.65
roubles ($0.0259) per share, significantly higher than the
previous quarterly one of 0.69 roubles a share.
    MMK's third-quarter earnings before interest, taxation,
depreciation and amortisation (EBITDA) fell to $525 million from
$671 million in the third quarter of 2018. MMK said its net
profit fell by 32% year-on-year to $271 million.
($1 = 63.7925 roubles)

 (Reporting by Polina Devitt; editing by Emelia
Sithole-Matarise)
 ((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))
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