Evraz Group’s major operating subsidiaries report Q2 2006 RAS Financial Results
August 10, 2006 — Evraz Group S.A. (LSE: EVR), one of the leading vertically integrated steel production and mining businesses with operations mainly in Russia, announces that its major Russian operating subsidiaries have filed financial results with the Federal Financial Markets Service of the Russian Federation (FFMS) for the three months ended June 30, 2006. The results are prepared in accordance with Russian accounting standards (RAS).
The filing of RAS accounting results for Evraz’s major Russian operating subsidiaries is a Russian regulatory requirement. RAS accounting results differ materially from IFRS and are not comparable to financial statements prepared in accordance with IFRS. The RAS accounting results of Evraz’s major Russian subsidiaries are not indicative of the financial condition or results of operations of these entities or of Evraz Group S.A. under IFRS. Reference should be made only to Evraz Group S.A.’s consolidated financial statements prepared in accordance with IFRS for information with respect to Evraz’s financial condition and results of operations.
Evraz Group S.A. publishes consolidated financial statements prepared in accordance with IFRS for the six months ended June 30 and for the year ended December 31, in each year.
- Higher profit at NTMK is attributable to higher prices and reduced costs
NTMK’s net profit for Q2 2006 increased by 60 % compared with Q1 2006 due to higher prices for steel products. Despite a decrease in iron ore and coking coal costs, net profit decreased slightly year-on-year due to the decline in vanadium slag prices in Q2 2006.
- ZapSib performance improved due to higher volumes, prices increases and strong cost management
Recovering steel prices was the main factor for better performance in Q2 2006 vs. Q1 2006. Profit year-on-year at ZapSib also benefited from an increase in production volumes and stronger cost control.
- KGOK and VGOK net profit year-on-year decrease principally due to the decline in iron ore prices
The profit year-on-year was impacted by lower domestic iron ore prices. In Q2 2006 average iron ore prices decreased by c.30 % compared with Q2 2005. Iron ore prices were stable Q2 2006 vs. Q1 2006.
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