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MOSCOW, Oct 18 (Reuters) - Severstal, one of Russia’s largest steelmakers, said on Wednesday its core earnings rose 5.5 percent year-on-year in the third quarter on the back of higher sales, but slightly missed analysts’ expectations.
Russian steelmakers are recovering from a two-year downturn as global prices improve and the Russian economy rebounds from a slowdown triggered by Western sanctions and weaker oil prices.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) totalled $616 million, the company said. Analysts polled by Reuters had forecast it at $633 million compared with $584 million a year ago.
Its revenue rose 24 percent year-on-year to $1.97 billion.
“Export prices and domestic prices remained strong in Q3 2017, supported by Chinese demand,” Alexander Shevelev, Severstal Management chief executive, said in a statement.
Severstal said it expected the fourth quarter of 2017 to be the strongest quarter of the year despite seasonal weakening. Its third-quarter net profit was $297 million, down from $429 million a year ago. Excluding a foreign-exchange loss, Severstal would have posted an underlying net profit of $320 million.
Severstal shares rose 0.7 percent in Moscow by 0741 GMT, outperforming Moscow’s benchmark MICEX index, which was flat. (Reporting by Polina Devitt; editing by Dmitry Solovyov and Jane Merriman)