Severstal

Metallurgical holding. The largest owner is Alexey Mordashov (82% of shares). Capitalization is $6.55 billion. Financial indicators (2008, IFRS): revenue - $22.39 billion, net profit - $2.034 billion.

Severstal reported under IFRS for the first half of 2009. The company's revenue was $5.65 billion (half as much as for the same period in 2008), EBITDA was minus $161 million (in 2008, the profit was $2.8 billion), and net loss was $944 million (against a profit of $1.9 billion).

However, the second quarter for Severstal turned out to be much more successful than the first three months of the year. With comparable revenue of $2.8 billion, EBITDA in April-May was negative - $5 million, while in January-March the loss was $156 million. The net loss also decreased: in the second quarter it was $290 million against $654 million at the beginning of the year. However, this time the loss was also partially paper: $167 million of it was due to exchange rate differences (in the first quarter it was $381 million).

Severstal's finances are seriously suffering due to foreign assets, notes VTB Capital analyst Alexander Pukhaev. For example, North American assets brought Severstal a negative EBITDA of $479 million in the first half of the year, and Lucchini - $129 million, with the majority of the Italian company's loss occurring in the second quarter. In practice, Severstal's loss is associated with foreigners, agrees UBS analyst Alexey Morozov. But in Russia, Severstal's business is clearly on the rise: EBITDA of domestic enterprises in the second quarter increased almost threefold to $242 million, and the profitability for this indicator was 18%. This is the same as that of the industry leader in profitability - NLMK, notes Pukhaev.

Severstal's Director of Finance and Economics Alexey Kulichenko noted during a teleconference that Severstal has a stable financial position. At the end of the first half of the year, the company had $2.6 billion in cash and cash equivalents, and net debt was $4.9 million.

The second half of the year, according to Morozov, will be better for Severstal. In total, he predicts $11.5 billion in revenue and $740 million in EBITDA for the year. Pukhaev thinks that EBITDA will be $800 million.

Severstal's losses came from abroad