OREANDA-NEWS. Russian vertically integrated mining firm and steelmaker Metalloinvest came under severe pressure last year from declining global iron ore and steel prices — revenue dropped by 31pc to $4.39bn.

The firm responded to limited domestic demand by redirecting output to export markets. But tumbling global prices prevented this strategy from yielding strong revenues.

Revenue from domestic sales fell to $1.88bn last year from $2.61bn in 2014, while sales to Europe fell to $967mn from $1.33bn. Revenue from Asia-Pacific sales of $253mn were down from $455mn in 2014, while sales to the Middle East and north Africa were down to $720mn from $1bn.

Cost cutting measures enabled the company to keep its earnings before interest, taxes, depreciation and amortisation (ebitda) margin above 30pc, with overall ebitda down by 27pc at $1.43bn last year.

Metalloinvest remains focused on reducing its debts, having cut net debt by 15pc last year to $3.56bn. It claims to have enough cash to cover its debt repayments until 2017 and $297mn of credit secured with a group of international banks in June is sufficient to cover a substantial part of the capital expenditure requirements for construction of a hot briquetted plant at its Lebedinsky GOK plant.

The firm has additional financial reserves available through its 3.2pc stake in Russian mining and smelting firm Norilsk Nickel and secured a $400mn loan last month to boost liquidity.

Product 2015 2014 ±%
 
Steel and rolled products 1,819,499,000 2,490,094,000 -26.9
Iron ore pellets 855,355,000 1,357,854,000 -37.0
Iron ore 542,050,000 897,213,000 -39.6
Hot briquetted iron 527,419,000 715,121,000 -26.3
Pig iron 480,121,000 685,308,000 -29.9
Scrap 16,762,000 13,748,000 21.9
Other revenue 151,993,000 227,402,000 -33.2
Total 4,393,199,000 6,366,740,000 -31.0