Mechel update power segment result for the H1 of 2010
H1'10 H1'09 Change
Revenue 333,219 256,512 29.90%
Intersegment sales 209,040 138,511 50,9%
Operating income 16,912 12,336 37.10%
Net income 5,218 -4,313 221.00%
EBITDA 25,818 18,881 36.70%
(In thousand USD)
Mechel power segment revenue from external customers in the first half of 2010 comprised USD 333.2 million, or 7.7% of consolidated net revenue, an increase of 29.9%YoY compared with the segment’s revenue from external customers of USD 256.5 million or 10.4% of consolidated net revenue in the first half of 2009.
The operating income in the power segment in the first half of 2010 amounted to USD 16.9 million or 3.12% of the total segment’s revenue in the same period an increase of 37.1%YoY compared to the operating income of USD 12.3 million or 3.12% of the total segment’s revenue in the first half of 2009.
The EBITDA in the power segment in the first half of 2010 went up by 36.7% totaling USD 25.8 million, compared to the EBITDA of USD 18.9 million in the first half of 2009. The EBITDA margin for the power segment amounted to 4.76% compared to 4.78% in the first half of 2009.
Depreciation, depletion and amortization in power segment in the first half of 2010 decreased by 0.3% comparing with the same period in 2009 from USD 7.98 million to USD 7.95 million.
Mr Viktor Gvozdev CEO of Mechel Energo noted that “The power segment demonstrated steady results in the first half of 2010. Softening of financial results in the second quarter was caused by seasonal reduction of heat energy sales after the end of the heating period.
During the summer we carried out all the necessary procurement and maintenance works as part of preparation for the winter heating season. We are constantly working on cost optimization in the second quarter we managed to cut costs of power generation by 8% by using cheaper coal types in our generation. Power generation volume has substantially increased compared to the same period a year ago. Beginning from January 2011, Russian power market will become fully liberalized which will stimulate further economic growth of Mechel power segment.”
Friday, October 8, 2010
Mechel update power segment results for H1 of 2010
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