MOSCOW, August 29. /TASS/. Net profit of Severstal under the International Financial Reporting Standards (IFRS) in the first half of 2023 decreased by 11% year-on-year to 105.27 bln rubles ($1.1 bln), while EBITDA decreased by 12% and amounted to 118.46 bln rubles ($1.24 bln), according to the company's report.

The company's revenue in January-June decreased by 10% to 339.43 bln rubles ($3.35 bln) due to declining average selling prices. Free cash flow for the period increased by 1% to 60.05 bln rubles ($627.82 mln). EBITDA margin for the reporting period was 35% against 36% a year earlier.

The company's cash increased to 300.75 bln rubles ($3.15 bln) during the reporting period, up from 186.22 bln rubles ($1.95 bln) at the end of 2022, due to anti-crisis measures in the form of a temporary refusal to pay dividends to form a sufficient liquidity in response to sanctions pressure on the company. At the same time, Severstal's overall debt climbed by 43% year-on-year to 147.34 bln rubles ($1.54. bln) The company’s net debt to EBITDA ratio was -0.77.

Severstal is a vertically integrated mining and steel company, one of Russia's leading steel producers. Cherepovets Steel Mill, with a manufacturing capacity of around 12 mln metric tons of steel per year, is the company's main asset.