MOSCOW, August 28. /TASS/. Mechel ended the first half of 2025 with a net loss of 40.5 bln rubles ($503.4 mln) under the International Financial Reporting Standards (IFRS), compared with a net loss of 16.68 bln rubles ($207.3 mln) a year earlier, due to a significant decline in revenue in both its mining and steel segments this year, the company said in a statement.

In the Q2 alone, the company posted a loss of 27.46 bln rubles ($341.3 mln) compared with a loss of 13.05 bln rubles ($162.2 mln) in the Q1, primarily due to asset impairment charges in the mining segment.

Mechel’s revenue in H1 fell by 26% to 152.3 bln rubles ($1.89 bln). Adjusted EBITDA decreased by 83% to 5.7 bln rubles ($70.9 mln). Despite this, operating cash flow from core activities in the first half of 2025 grew by 88% year-on-year to 33.2 bln rubles ($412.6 mln), driven by accelerated mobilization of working capital to support operations and ensure timely fulfillment of financial obligations against the backdrop of a steep decline in EBITDA.

The company noted that financial expenses rose by 33% in the reporting period, reaching 26.8 bln rubles ($333.3 mln), due to the higher key rate set by the Bank of Russia. Meanwhile, the group’s capital expenditures for the renewal and maintenance of fixed assets, excluding leasing, dropped by 27% compared with the same period last year, totaling 6.7 bln rubles ($83.3 mln).

As of the current date, the cost of the debt portfolio stands at 18.8%. Net debt, excluding penalties and fines, amounted to 252.7 bln rubles ($3.14 bln) as of June 30, 2025, down 3% compared with the end of 2024. The change was mainly due to the strengthening of the ruble against the yuan and the euro, the company explained. The net debt-to-EBITDA ratio reached 8.8x at the end of H1 2025, compared with 4.6x at the end of 2024. The increase was attributed to a significant decline in EBITDA over the 12 months ended June 30, 2025.