Mechel OAO (MTL) announced that its enterprise, Mechel Service OOO, has inked an agreement with Credit Bank of Moscow to extend the maturity of its existing credit lines, totaling $105 million, till Feb 2016. The security pledge and interest rate remain unaltered.
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 posted net loss (as reported) of $575 million in the third quarter of 2014, wider than a net loss of $127 million recorded in the third quarter of 2013 and a loss of $63 million recorded in the previous quarter. Results were partly affected by a significant plunge in coal and iron ore prices.
Adjusted net loss was $15 million for the reported quarter compared with $85 million reported in the year-ago period and $152 million in the previous quarter.
Revenues for the third quarter came in at $1,588 million, down about 24% from $2,089 million in the year-ago period. Sales were also down 9% sequentially.
Mechel registered adjusted operating income of $107 million for the reported quarter compared with an operating income of $39 million in the year-ago quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $219 million in the third quarter of 2014.
As of Sep 30, 2014, Mechel’s long-term debt was $240.9 million compared with $7,194 million as of Sep 30, 2013. As of Sep 30, 2014, cash and cash equivalents amounted to $72.1 million, down around 31% year over year.
Mechel currently carries a Zacks Rank #2 (Buy).
Other steel companies worth considering include LB Foster Co. (FSTR), RTI International Metals, Inc. (RTI) and Mueller Water Products, Inc. (MWA). All of them carry the same rank as Mechel.
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