Mechel OAO H1, 9-month Loss Widens - Quick Facts

(RTTNews) - Mechel OAO (MTL), Russia-based mining and steel group, reported that net loss attributable to common shareholders for the six-month ended June 30, 2013 widened to $2.12 billion from $684.06 million in the year ago period. Loss from continuing operations widened to $1.04 billion from the prior year's $361.53 million.

Adjusted net loss for the six-month period was $397.82 million, compared to adjusted net income of $201.42 million last year.

Net revenue for the six-month period declined to $4.60 billion from $5.67 billion in the same period last year.

For the nine-month ended September 30, 2013, the company said that net loss attributable to common shareholders widened to $2.25 billion from $629.15 million in the prior year period. Adjusted net loss was $482.93 million, compared to adjusted net income of $368.70 million in the previous year.

Net revenue for the nine-month period was $6.69 billion down from $8.22 billion last year.

Commenting on the company's nine-month 2013 financial results, Evgeny Mikhel, Mechel OAO's Chief Executive Officer, said, ""This year, the company operated in the conditions of continuing weakness on our key markets, which to a large extent had an impact on its main financial results. Nevertheless, by strictly adhering to our planned course aimed at creating conditions for deleveraging, we managed to resolve the most critical issues. We have successfully negotiated with our creditor banks for covenant holidays until the end of 2014. The program for disposal of non-core assets has largely been implemented. As a result of this business restructuring we saw an improvement in operating cashflows. However, the other side of this process was one-off write-downs that led to a net loss of $2.2 billion for 9 months of 2013."