First quarter 2011 net profit for Russia's fourth largest steelmaker Novolipetsk Steel (NLMK) jumped 200 percent year-on-year to $392 million, the firm said in a statement on Thursday.
NLMK's revenue increased 39 percent year-on-year, mostly due to higher prices for steel products and larger sales of coated steels following the launch of new production facilities, as well as larger sales of electrical steels, the firm said.
NLMK's operating profit rose 75 percent in the first quarter to $463 million, while operating profit margin increased by 4 percentage points to 20 percent.
EBITDA soared 51 percent year-on-year to $585 million due to improved operational efficiency and higher selling prices.
"According to preliminary estimates, second quarter revenue will grow 5-10 percent. EBITDA margin is expected to be in a 25-30 percent range," NLMK said.
Production expenses grew 40 percent in the reporting period, mostly because of higher prices for raw materials and natural monopoly services - iron ore pellets, coking coal, natural gas, scrap, energy, and tariffs for railway transportation, NLMK said.
MOSCOW, June 9 (RIA Novosti)