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Russia's Severstal posts Q4 loss on FX, impairment charge

Severstal, one of Russia's largest steel producers, said on Wednesday its fourth-quarter net loss had widened to $795 million from a loss of $45 million in the previous quarter due to non-cash items.

Without the non-cash items - a foreign exchange loss and an impairment charge - the company would have posted a net profit of $534 million in the fourth quarter, it added in a statement.

It posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $602 million, down 5.3 percent quarter-on-quarter, slightly missing analysts forecasts for a level of $609 million in a Reuters poll.

A Severstal plate-rolling shop in Cherepovets, Vologda region, Russia
Sovfoto | UIG | Getty Images
A Severstal plate-rolling shop in Cherepovets, Vologda region, Russia

Severstal also said its EBITDA margin expanded further by 3.7 percentage points, quarter-on-quarter, to 32.1 percent and reached the highest level since the third quarter of 2008 as efficiency improvements, lower input costs and the rouble depreciation mitigated the impact of lower selling prices.

"Severstal is now fully focused on its most profitable assets," Alexey Mordashov, its controlling shareholder and chief executive, said in the statement.