MOSCOW: Severstal Russia's largest steelmaker, swung to a first-quarter net profit of $531 million on the back of higher global metal prices and demand.
Severstal also said on Tuesday it planned to sell 2.25 million global depositary receipts and 246,000 ordinary shares held in treasury to reduce net debt.
It had been expected to report a first-quarter net profit of $534 million, a Reuters poll found. It made a $785 million loss in the 2010 period.
Revenue rose 36 percent to $3.73 billion, compared with a forecast for $3.83 billion. Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 60 percent to $934 million, against a $948 million forecast.
"Our net debt/EBITDA level continued to decline to 1.2 times, below the targeted 1.5 times and we are committed to maintaining this reasonable level of debt and strong liquidity position," chief executive Alexei Mordashov said.
"We expect further improvement in our operating and financial performance in Q2 2011 and are confident about our full-year outlook," Mordashov, Severstal's controlling shareholder, said.
Severstal has assets in Russia, the CIS, Italy, France, the United States and Africa, and last week added a stake in Brazilian iron ore company Mineracao.
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