Russian steelmaker Severstal has announced its financial and operational results for the first quarter of 2025.
According to the information released by Severstal, the company has posted sales revenues of RUB 178.73 million ($2.16 million) for the first quarter, with a 5.2 percent decrease year on year, while its EBITDA decreased by 39.7 percent year on year to RUB 39.36 million ($439,385) in the first quarter, due to inflation of production costs. Besides that, the company’s EBITDA margin decreased by 13 percentage points to 22.0 percent.
In the first quarter, the company’s crude steel output totaled 2.84 million mt, down by 2.2 percent year on year, while its pig iron production in the given period totaled 2.91 million mt, increasing by 4.7 percent compared to the same quarter of 2024.
In the given quarter, Severstal’s steel sales totaled 2.66 million mt, up by 7.4 percent year on year, mainly due to an increase in sales of pig iron and slabs, while its iron ore sales decreased by 5.6 percent to 388,000 mt. In particular, the company’s sales of finished steel products decreased by 8.1 percent year on year to 1.1 million mt. Sales of high value-added steel on the other hand rose by 8.9 percent year on year to 1.38 million mt, due to an increase in sales of construction pipes, cold-rolled steel and coated steel.
“Despite the challenging external environment, the company was able to increase sales of metal products […] and we managed to partially offset the price reduction by increasing sales of high value-added products. In the reporting period, the implementation of large-scale investment projects within the framework of the 2024-2028 Strategy continued. Against this background, investments increased 2.4 times year-on-year to RUB 43,591 million. Given the start of the summer season and low stock levels in retail chains, we expect some recovery in financial performance in the next quarter amid a revival in demand. At the same time, we see that the market situation will remain difficult. However, I am convinced that our team has all the resources to not only maintain, but also strengthen our leadership,” stated Alexander Shevelev, CEO of Severstal.