By Joe Hoppe
Severstal PAO said Thursday that its net profit for the third quarter of 2020 fell 66% amid weaker prices and lower sales volumes, but declared an interim dividend and upgraded full-year guidance.
The Russian steelmaker made a net profit of $167 million for the quarter to Sept. 30, compared with $490 million for the year-earlier period. The company said it booked a $262 million loss due to adverse foreign-exchange movements.
Revenue for the quarter was $1.88 billion, down from $2.11 billion a year earlier, Severstal said. Revenue rose 18% quarter-on-quarter, driven by recovery in steel prices, along with growth in sales volume.
The company said its earnings before interest, taxes, depreciation and amortization margin was 35%.
Severstal said despite a number of potential headwinds in both the export and domestic markets, its low-cost position allows it to stay competitive and it remains confident in its position compared with local and global peers.
The company said a recovery in third-quarter demand in Russian domestic steel led it to upgrade its outlook for 2020, with a full-year decrease in Russian steel consumption of 6% year-on-year.
The board declared a dividend for the third quarter of 37.34 Russian rubles (48.71 cents) a share.
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