OREANDA-NEWS. February 17, 2011. Alchevsk Steelworks has announced net loss of UAH 1,013mn in FY10, implying the net loss of UAH 261mn in 4Q10.

Millennium Capital: the news is NEUTRAL for ALMK. The 4Q10 loss of UAH 261mn is 1.7x smaller than our expectations of UAH 450mn and we wait for the full disclosure to trace the source of improvement. Meanwhile the yearly loss went up from UAH 890mn in FY09 to UAH 1,013mn in FY10. The weak financials in FY10 are due to the working capital shortfalls experienced by the company through the entire 2010, but now with a recent USD  500mn debt facility replenishing the WC of all IUD plants we see higher utilization and scale effects driving significant improvement in performance of ALMK in FY11.