By KYIV. Oct 31 (Interfax-Ukraine) – Metinvest B.V. (the Netherlands), the parent company of the international vertically integrated mining and metallurgical group Metinvest, in January-June of this year posted a net loss of $1.698 billion, while in the same period last year it received a net profit of $2.769 billion.
According to the company’s preliminary unaudited interim financial results for the six months of 2022, revenue for this period decreased by 38%, to $5.272 billion. Due to the war, the group impaired assets by $3.523 billion, of which $2.205 billion went to the income statement.
The net margin became negative – minus 32%, while in January-June 2022 it was +33%.
Capital investment halved to $207 million.
In addition, it is reported that, in accordance with the concept of the group, the priority of capital investments is only in carrying out important maintenance and the decision to suspend almost all current strategic projects in view of the war. Maintenance investment was down 47% year-over-year, while strategic project investment was down 57%. As a result, their share in total expenses amounted to 76% and 24%, respectively, in the reporting period (72% and 28% in the first half of 2021).
The metals segment accounted for 33% of total capex (45% in H1 2021), while the mining segment accounted for 63% (50%). Corporate overheads accounted for 4% of investments in H1 2022 (5%).
The total debt of the company decreased by 1%, to $2.223 billion. At the same time, the volume of cash decreased by 61%, to $460 million. Net debt increased by 64%, to $1.763 billion.
