VYKSA, Nizhny Novgorod Region, Sep 22 (PRIME) -- Russia’s United Metallurgical Company (OMK) expects revenue to grow on the year in 2017, while earnings before interest, taxes, depreciation and amortization (EBIDTA) may remain flat, core owner and the board of directors’ Chairman Anatoly Sedykh told reporters on Friday.
In 2016, OMK’s revenue fell 13% on the year to 140 billion rubles and EBITDA decreased 1% to 34.9 billion rubles.
“I think that the revenue will be higher than last year, while EBITDA will remain close to flat on the year,” he said, adding that demand and prices for metal products grew this year.
OMK President Vladimir Markin said that the company plans to increase production of certain types of products, including rail car wheels, in 2017.
“Consumption of rail car wheels increased this year, and we are ready to make about 600,000 units, but this does not load our capacities up to full, it accounts only for about 70% of them. Russian producers, including Vyksa Steel Works, are ready to completely satisfy the current and future demand of the market,” he said.
“In addition to that, our division of oil and gas pipes will reach the production of 1 million tonnes for the first time, and our steel output is to rise to 1.3 million tonnes,” Markin said.
Sedykh also said that OMK plans to invest U.S. $300 million per year in the coming years. “Our investment program is big today once again. There was a pause after we had built the mill-5000, our investments were at $100–150 million per year. Today, we again reached a rather serious level of, probably, $300 million a year that we will invest in the near future,” he said.
Production of oil is becoming more and more difficult, and consumption of pipes is growing, as well as demand for quality of pipes. OMK has several new projects in production that can satisfy demand of the oil sector, Sedykh said.
(58.2242 rubles – U.S. $1)
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