Russian miner, Mechel OAO’s (MTL) Southern Kuzbass Coal Company OAO and Yakutugol Holding Company OAO have signed agreements with VTB Bank which extended the maturity of the loans granted earlier totaling 15.8 billion rubles (roughly $460 million).
Per the new agreement signed with VTB, payment will begin in April 2015 and the final payment will be made in 2018. The sum of all extended loans came up to 33.8 billion rubles ($980 million), including 18.6 billion rubles for 2014, 6.4 billion rubles for 2015 and 8.8 billion rubles for 2016.
In May 2014, Mechel released its results for the fourth quarter and full-year 2013. Mechel posted a consolidated net loss (as reported) of $2.9 billion for 2013, much higher than a net loss of $1.7 billion registered in 2012. The higher loss was mainly due to over $2 billion of write-offs associated with discontinued operations.
Adjusted net loss was $734 million for the year, in stark contrast to a profit of $305 million registered in 2012.
For the fourth quarter, Mechel posted a net loss of $681 million, higher than a loss of $127 million recorded in third-quarter 2013, but lower than a loss of $1.1 billion logged a year-ago. Adjusted loss increased to $251 million in the reported quarter from around $161 million registered in the year-ago quarter and $85 million in the previous quarter.
Revenues for 2013 came in at roughly $8.6 billion, down 19% from $10.6 billion in the year-ago period. The decline was attributable to the company’s disposal of unprofitable assets (Romanian facilities) and interruption of supplies from third parties due to the end of its partnership with Estar plants.
For the fourth quarter, revenues fell around 25% year over year and 10% sequentially to roughly $1.9 billion.
Mechel is a leading domestic steel and coal producer with a strong position in key businesses, including production of specialty steel and alloys. The company currently carries a Zacks Rank #4 (Sell).
Other companies in the steel and related industries with a favorable Zacks Rank include Universal Stainless & Alloy Products Inc. (USAP), ThyssenKrupp AG (TYEKF) and Olympic Steel Inc. (ZEUS). While Universal Stainless & Alloy Products sports a Zacks Rank #1 (Strong Buy), ThyssenKrupp and Olympic Steel carry a Zacks Rank #2 (Buy).
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