The operating loss in the power segment in 3Q2012 amounted to $10.9 million, or -4.2% of the segment's revenue in the same period compared to an operating loss of $56.2 million, or -19.5% of the total segment revenue, in 2Q2012. The adjusted EBITDA in the power segment in 3Q2012 amounted to negative $6.6 million, compared to the adjusted positive EBITDA of $0.3 million in 2Q2012. The adjusted EBITDA margin for the power segment in 3Q2012 amounted to -2.6% compared to 0.1% in 2Q2012. Depreciation and amortization in power segment in 3Q2012 decreased by 0.8% comparing with the 2Q2012 from $3.65 million to $3.62 million.
Mechel-Energo OOO's Chief Executive Officer Yuri Yampolsky noted:
"In the third quarter the power division worked with a low-season load and was preparing for the forthcoming winter period as planned. At the same time, production results are as planned and even exceed plans at some enterprises. Repairs and preparation for the winter are also complete. Financial results were typical for low-season electricity and heat consumption, and are generally on the level of the previous period."
- In October 2012, Mechel reported signing long-term agreements with Sberbank of Russia OAO pursuant to which Sberbank opened four credit lines to Southern Kuzbass Coal Company OAO for a total of 24 billion rubles for a period of five years with a three-year grace period. Yakutugol Holding Company OAO, Mechel Mining OAO and Mechel OAO act as guarantors of the facility.
- In October 2012, due to accumulated coal inventories, Mechel reported the temporary halting of mining facilities at Mechel Bluestone.
- In November 2012, Mechel reported the temporary halting of production facilities at Donetsk Electrometallurgical Plant (DEMZ), and the schedule for temporary suspension of production at the group's Romanian steelmaking facilities, in both cases due to unfavorable conditions on markets of raw materials and finished steel products.
- In December 2012, Mechel announced signing an amendment and restatement agreement in relation to a syndicated pre-export loan totalling 1 billion US dollars in order to further improve the liquidity of the company.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV