Russian steel company OMK reports 45% rise in net profit in 2005

MOSCOW, February 2 (RIA Novosti) - Russian steel company OMK reported Thursday that its net profit in 2005 had increased by an estimated 45% year-on-year to $353 million.

The company's earnings totaled more than $2 billion in the reporting period, OMK said in a statement.

"The company improved its financial performance after it expanded output and optimized and modernized its production capacities," OMK President Anatoly Sedykh said. The company's performance can also be attributed to the favorable market situation, he added.

Sedykh said the year 2005 had proven to be a success for the sector as a whole and for the company in particular.

According to Sedykh, Russia produced 6.7 million metric tons of pipes in 2005, or 600,000 metric tons more than last year.

The OMK group of enterprises manufactured 1.1 million metric tons of pipes in 2005, up 15% from a year earlier.

The company spent $506 million on investment programs in 2005, including $54 million in circulating assets, up 85% from 2004.

In 2005, the company expanded its production of large-diameter pipes intended for the construction of large trunk pipelines, such as the North European Gas Pipeline and the Eastern Siberia-Pacific oil pipeline.

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