The net loss widened to $2.25 billion in January through September from $550 million a year earlier, Moscow-based Mechel said today in a statement.
“This year, the company operated in the conditions of continuing weakness on our key markets,” Chief Executive Officer Evgeny Mikhel said in the filing. “One-off writedowns” resulted from a business restructuring program, he said.
The company and its peers have suffered declining prices for coal as economic stagnation cut demand from steel producers. Mechel, among Russia’s most indebted mining companies, won waivers on loans from Russian and international lenders this month, on top of covenant holidays granted in November.
Net borrowings totaled $9 billion at the end of September, down from $9.5 billion on June 1.
Mechel slumped 41 percent to 57 rubles in Moscow trading on Nov. 13, the biggest one-day decline since at least 2008, on speculation it may not be able to repay debt. The stock rose 1.1 percent to 67.6 rubles as of 12:53 p.m. local time today.
Earnings before interest, taxes, depreciation and amortization fell 55 percent in the nine months to $608 million, the statement shows. Sales dropped 19 percent to $6.7 billion.
“Despite a fairly complicated macroeconomic situation, steel production and consumption of raw materials for steelmaking is growing in the world, and we intend to continue focusing on improving production efficiency, market diversification and expanding our client base,” Mikhel said.
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