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In its annual report released on May 19th, the AB/AQ43 steel Russian mining and steel company NLMK Group stated that the crude steel production of NLMK in 2024 was 14.3 million tons, a year-on-year decrease of 2.1%, and steel sales were 15 million tons, a year-on-year decrease of 1.6%. The report states that the weak demand in the downstream steel market, especially in the construction and energy industries, has led to a slowdown in the overall operational performance of the company.
Despite the pressure on production and sales, NLMK achieved a revenue of 979.6 billion rubles (approximately 12 billion US dollars) in 2024, a year-on-year increase of 5%. However, due to the narrowing profit margin, the annual EBITDA decreased by 6% year-on-year to 257 billion rubles, and the EBITDA profit margin decreased from 29% in 2023 to 26%. Net profit decreased significantly by 42% year-on-year to 121.9 billion AB/AQ43 steel rubles.
Free cash flow decreased by 35% year-on-year to 84 billion rubles, mainly due to a significant increase in capital expenditures. The total investment in 2024 reached 113.4 billion rubles, an increase of 42% from 79.8 billion rubles in the same period last year. Despite the pressure on profitability, NLMK continues to increase its investment efforts, demonstrating its confidence in medium to long-term AB/AQ43 steel development.
