OREANDA-NEWS. On June 20, 2007 OJSC Novolipetsk Steel (NLMK), the LSE listed leading Russian steel producer, announced its consolidated results for the 1st Quarter 2007, reported the press-centre of NLMK.

Highlights:

Strong Q1 2007 financial results

- Sales revenues amounted to USD 1,750.2 million (+61% YoY)

- Cash flows from operating activities were USD 459,3 million

- EBITDA amounted to USD 748,1 million (+93% YoY);  EBITDA margin 43%

- Cash and cash equivalents USD 898.3 million as of 31 March, 2007

Commenting on NLMK’s US GAAP Q1 2007 results, Galina Aglyamova, Vice President Finance & CFO, said:

“NLMK has demonstrated strong financial results in Q1 2007. The EBITDA margin stood at 43% while operating income surged 70% on a year-on-year basis.  The company’s sound performance was driven by growing sales volumes particularly sales of high value-added products along with the favorable pricing environment in our core markets.

“At the beginning of the year, NLMK Group started to implement the next phase of the Technical Upgrading Program as part of our “Sustainable Growth Strategy 2007 - 2011”. The Company continued the process of enhancement and modernization of existing production facilities, value-chain optimization and integration of recently acquired assets into the Group structure. The consistent implementation of our strategy is a key element of NLMK’s successful development and long-term stability.

“We maintain a positive outlook on steel demand both on the domestic and world market in 2007.  The price growth started at the end of Q1 2007 and continued through Q2 2007, plateaued in June. While we may see possible price softening towards the end of the year we believe NLMK Group should again demonstrate record financial results and strengthen its position among world’s most profitable steelmaking companies in 2007.”

You may also download a Q1 2007 Financial and Production Results presentation HERE: http://www.nlmksteel.com/upload/Financials/Q1%202007/Presentation%20Q1%202007%20US%20GAAP%20(NLMK).pdf