“Mechel” at the end of the first quarter received a total of 36.9 billion rubles of net loss vs profit a year earlier. Although the result was negatively affected by exchange rate difference, even without considering the activities of the company were unprofitable. Net debt “Mechel”, it grew to 427 billion rubles, and the ratio of net debt to EBITDA increased to 8.4. But in April the situation could seriously change: in the report did not get the sale of Elga coal Deposit and debt restructuring.In the first quarter of “Mechel” received RR 36.9 billion loss at 27.1 billion rubles more than in the fourth quarter of last year. A year ago, the company showed a profit of 11.3 billion rubles. the result was negatively affected by the weakening of the ruble, the effect of exchange rate differences amounted to 32.9 billion rubles. Thus, even without taking into account this effect of “Mechel” in the first quarter was at a loss. EBITDA declined by 17% yoy to RUB 12.7 billion, with growth by the fourth quarter was 36%. The company’s net debt increased by RUB 27 billion to 427 billion rubles Ratio of net debt/EBITDA increased from 7.5 at the end of 2019 to 8.4. The figure is important because its value is one of the conditions of covenants on loans.EBITDA of the metallurgy segment amounted to 4.5 billion rubles, having increased in annual terms by half. EBITDA of the mining segment fell by 41% compared to the first quarter of last year to 6.4 billion rubles. Financial report does not consider the effect of the sale of the Elga Deposit and the agreement on restructuring of debt with the main lending banks, VTB and Gazprombank, which took place in April. Mechel has sold its 51% in three companies-operators of the Elga Deposit for 89 billion rubles. “A-property” albert Avdalyan. The new owner of the field was also covered with the obligations of Mechel prior to EBV of $107 million restructuring Agreement assumes that the proceeds from the sale of Elga goes for early repayment of principal to banks in proportion to their shares in the loan portfolio of the company, and the period of repayment of the loans extended by seven years to 2027 with the possibility of extension for another three years.”Mechel” has informed in the reporting that VTB and Gazprombank have documented the fulfillment of all the suspensive conditions and the entry into force of the restructuring of credit agreements. Financial debt of the company as a result of reduced 146 billion rubles, and in the structure of the loan portfolio increases the share of foreign currency loans from 35% last year to 44%.Eugene Zainullin
