Consolidated revenue - 299.1 bln rubles (+8% compared to FY2016) EBITDA *  - 81.1 bln rubles (+23% compared to FY2016) Profit attributable to equity shareholders of Mechel PAO - 11.6 bln rubles

MOSCOW, April 05, 2018 (GLOBE NEWSWIRE) -- Mechel PAO (MOEX:MTLR) (NYSE:MTL) , a leading Russian mining and steel group, announces financial results for the full year 2017.

Mechel PAO's Chief Executive Officer Oleg Korzhov commented:"The 2017 financial results exceeded those of 2016. High coal prices greatly supported our mining division's results. The steel division last year had to work in a more difficult environment, but by the end of the year the situation stabilized and the division attained good results.

"Metallurgical coal prices in 2017 were influenced by a large number of different factors, including weather cataclysms in Australia, China's policy of regulating mining and steelmaking volumes, production and shipping problems in Australia's mines and ports. As a result, coking coal prices were fluctuating very widely, with the annual average greatly exceeding expectations.

"The steel product market was less volatile, though the first and the second halves of the year were markedly different insofar as prices for finished products and production costs were concerned. The beginning of the year was characterized by high costs as coal and iron ore prices spiked, even as many products in our range met with weak demand and low price levels. The situation improved only in the second half of the year.

"One of our mining division's key challenges was restoration of its mining volumes which have declined due to the lack of a sufficient amount of coal prepared for extraction. Starting in the second half of 2017 and throughout this year's first quarter, we took steps to increase stripping operations by acquiring new equipment, actively funding repairs and bringing in contractors with equipment of their own.

"Last year, we have acquired and launched dozens of machines for our mines, open pits and washing plants, as well as modernized our environment-protection equipment. That includes 55 new equipment units for our Yakutia assets alone, including 5 excavators and 23 BelAZ trucks. This year more new equipment is forthcoming, which will enable us to step up mining volumes and take better advantage of the favorable market situation.

"The steel division consistently worked on optimizing its product range. Due to a decrease in the share of low-margin product sales, we increased output of high-value added products — structural steel, flat products, rails, stampings and forgings, products from specialty steels, and hardware from high-alloyed and stainless steels.

"The Group's capital investment in 2017 totaled 11 billion rubles, including leasing, which is 25% more than the previous year. Our plans for 2018 include a further increase in capital investment."

* EBITDA - Adjusted EBITDA. Please find the calculation of the Adjusted EBITDA and other non-IFRS measures used here and hereafter in Attachment A.

Consolidated Results For The Full Year 2017
Mln rubles FY 2017 FY 2016 % 4Q'17 3Q'17 %
Revenuefrom external customers 299,113   276,009   8 % 76,316   73,413   4 %
Operating profit 57,167   42,690   34 % 10,752   15,738   -32 %
EBITDA 81,106   66,164   23 % 21,966   18,913   16 %
EBITDA, margin 27 % 24 %   29 % 26 %  
Profit attributable to equity shareholders of Mechel PAO 11,557   7,126   62 % 443   6,120   -93 %

Mining Segment

Mechel-Mining Management Company OOO's Chief Executive Officer Pavel Shtark noted:"This past year was successful for the mining division with regard to financial results. The division's revenue has grown by 12% year-on-year, EBITDA went up by 47%, and EBITDA margin reached 43%.

"This improvement was due to a favorable market conditions. The metallurgical coal market was highly volatile in 2017, with spot prices fluctuating from $141 to $314 per tonne through the year. Nevertheless, coal prices in 2017 have well exceeded the 2016 price level. For example, the average price on quarterly contracts for high-quality hard coking coal was some $210 FOB Australia, which is $96 or 84% higher than in 2016. Late 2017 was characterized by an upward price dynamics for high-quality coking coal. In November 2017 prices again topped $200 and remained over this level until the end of March 2018. As a result, contract prices for premium coking coal demonstrated further growth in 1Q2018 and reached $237 per tonne.

"At the same time, there were factors that hampered the positive dynamics of our financial results. We were faced with occasional wagon shortages and natural disasters such as the Far East flooding. A decrease in coal mining and sales volumes had its impact on the division's results. Starting the mid-2017, the division's facilities are implementing a large-scale program to restore production volumes.

"We also plan to increase mining volumes by further developing Elga Coal Complex. Production plans for the Elga deposit in 2018 include mining volumes growth by nearly a quarter, up to nearly 5.3 million tonnes. High-quality coking coal will account for three quarters of this total volume."
Mln rubles FY 2017 FY 2016 % 4Q'17 3Q'17 %
Revenue from external customers 100,129   89,647   12 % 25,444   23,166   10 %
Revenueinter-segment 42,286   31,907   33 % 9,312   9,706   -4 %
EBITDA 61,425   41,884   47 % 14,098   12,764   10 %
EBITDA, margin 43 % 34 %   4 1 % 39 %  

Steel Segment

Mechel-Steel Management Company OOO's Chief Executive Officer Andrey Ponomarev noted:"For the steel division, the past year was uneven. The first two quarters saw weak markets and high commodity prices. In the third quarter the market situation improved and remained stable until the year's end. Prices for steel products consolidated, production costs went back to normal. As a result, profitability in the last two quarters rebounded, but overall 2017 results were weaker than in 2016, with EBITDA down by 19% year-on-year.

"In 2017 the division's revenue went up by 7% year-on-year. This was largely due to changes in our production and sales structure. We have almost entirely given up on selling billets and wire rod and reduced rebar sales by 11%. At the same time, rail sales went up by 18%, sales of the universal rolling mill's other structural shapes by 33%, stainless long steel by 16%, flat steel by 17%, forgings by 18% and stampings by 28%. Thus, sales of high value-added products demonstrated growth, which had its positive impact on the whole division's profitability and make its results more resistant to market volatility.

"In order to further improve our product range, we continue to master new types of high value added products in demand by market. For example, last year Beloretsk Metallurgical Plant designed and produced new types of ropes, rope wires, stainless wire and bar of various sizes from more than 10 alloyed and high-alloyed steels. Chelyabinsk Metallurgical Plant increased exports of the universal rolling mill's new products after they earned European quality certificates."
Mln rubles FY 2017 FY 2016 % 4Q'17 3Q'17 %
Revenue from external customers 172,760   161,639   7 % 43,383   44,422   -2 %
Revenueinter-segment 7,622   7,254   5 % 2,209   1,673   32 %
EBITDA 18,817   23,172   -19 % 6,642   6,101   9 %
EBITDA, margin 10 % 14 %   15 % 13 %  

Power Segment        

Mechel-Energo OOO's Chief Executive Officer Petr Pashnin noted: "On the whole, production and sales of the division's key products changed little year-on-year. Positive dynamics in our revenues, both from third parties and within the group, and EBITDA was due primarily to a planned growth of electricity and heat tariffs in 2017. Also, the price growth exceeded the increase in production costs."
Mln rubles FY 2017 FY 2016 % 4Q'17 3Q'17 %
Revenue from external customers 26,224   24,723   6 % 7,489   5,825   29 %
Revenueinter-segment 16,338   15,903   3 % 4,427   3,438   29 %
EBITDA 2,308   1,662   39 % 1,319   23    
EBITDA, margin 5 % 4 %   11 % 0 %  

***

The management of Mechel will host a conference call today at 6:00 p.m. Moscow time (4:00 p.m. London time, 11 a.m. New York time) to review Mechel's financial results and comment on current operations. The call may be accessed via the Internet at http://www.mechel.com, under the Investor Relations section.

***

Alexey LukashovDirector of Investor RelationsMechel PAOPhone: 7-495-221-88-88Fax: 7-495-221-88-00alexey.lukashov@mechel.com

***

Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.

***

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

Attachments to the FY 2017 Earnings Press Release

Attachment A

Non-IFRS financial measures. This press release includes financial information prepared in accordance with International Financial Reporting Standards, or IFRS, as well as other financial measures referred to as non-IFRS. The non-IFRS financial measures should be considered in addition to, but not as a substitute for the information prepared in accordance with IFRS.

Adjusted EBITDA (EBITDA) represents profit (loss) attributable to equity shareholders of Mechel PAO before Depreciation, depletion and amortization, Foreign exchange (gain) loss, net, Finance costs including fines and penalties on overdue loans and borrowings and finance lease payments, Finance income, Net result on the disposal of non-current assets, Impairment of goodwill and other non-current assets, Write-off of accounts receivable, Provision (reversal of provision) for doubtful accounts,  Write-off of inventories to net realisable value, Loss (profit) after tax from discontinued operations, net, Net result on the disposal of subsidiaries, Profit (loss) attributable to non-controlling interests, Income tax expense (benefit), Pension service cost and actuarial loss, other related expenses, Other fines and penalties, Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term and Other one-off items. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of our Revenue. Our adjusted EBITDA may not be similar to EBITDA measures of other companies. Adjusted EBITDA is not a measurement under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of profit (loss). We believe that our adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation, depletion, amortization and impairment of goodwill and other non-current assets are considered operating expenses under IFRS, these expenses primarily represent the non-cash current period allocation of costs associated with non-current assets acquired or constructed in prior periods. Our adjusted EBITDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry.

Adjusted profit (loss) represents profit (loss) attributable to equity shareholders of Mechel PAO before Impairment of goodwill and other non-current assets, Loss (profit) after tax from discontinued operations, net, Net result on the disposal of subsidiaries, Effect on loss attributable to non-controlling interests, Foreign exchange (gain) loss, net, Pension service cost and actuarial loss, other related expenses, Other fines and penalties, Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term and Other one-off items. Our adjusted profit (loss) may not be similar to adjusted profit (loss) measures of other companies. Adjusted profit (loss) is not a measurement under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of profit (loss). We believe that our adjusted profit (loss) provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations. While impairment of goodwill and other non-current assets is considered operating expenses under IFRS, these expenses represent the non-cash current period allocation of costs associated with assets acquired or constructed in prior periods. Our adjusted profit (loss) calculation is used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry.

Our calculations of Net debt, excluding fines and penalties on overdue amounts** and trade working capital are presented below:
Mln rubles 31.12.2017   31.12.2016  
Interest-bearing loans and borrowings, excluding interest payable, fines and penalties on overdue amounts 380,541   395,571  
Interest payable 20,420   16,916  
Non-current interest-bearing loans and borrowings 17,360   11,644  
Other non-current financial liabilities 40,916   36,740  
Other current financial liabilities 734   -  
less Cash and cash equivalents (2,452 ) (1,689 )
Net debt, excluding finance lease liabilities, fines and penalties on overdue amounts 457,519   459,182  
     
Current finance lease liabilities 7,476   10,175  
Non-current finance lease liabilities 1,878   421  
Net debt, excluding fines and penalties on overdue amounts 466,873   469,778  
     
     
Mln rubles 31.12.2017   31.12.2016  
Trade and other receivables 18,762   19,054  
Inventories 37,990   35,227  
Other current assets 7,589   6,942  
Income tax receivables 107   686  
Trade current assets 64,448   61,909  
     
Trade and other payables 33,469   40,985  
Advances received 4,385   3,815  
Provisions and other current liabilities 3,428   3,515  
Taxes and similar charges payable other than income tax 6,696   9,195  
Income tax payable 4,578   2,552  
Trade current liabilities 52,556   60,062  
     
Trade working capital 11,892   1,847  
         

** Calculations of Net debt could be differ from indicators calculated in accordance with loan agreements upon dependence on definitions in such agreements.

EBITDA can be reconciled to our consolidated statement of profit (loss) as follows:

               
  Consolidated Results   Mining Segment ***   Steel Segment ***   Power Segment ***
Mln rubles 12m 2017 12m 2016   12m 2017 12m 2016   12m 2017 12m 2016   12m 2017 12m 2016
Profit (loss) attributable to equity shareholders of Mechel PAO 11,557   7,126     18,188   1,797     (5,130 ) 6,399     (59 ) (517 )
Add:                      
Depreciation, depletion and amortization 14,227   13,714     7,979   7,912     5,800   5,435     448   367  
Foreign exchange (gain) loss, net (4,237 ) (25,947 )   (4,379 ) (14,960 )   144   (10,904 )   (2 ) (83 )
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments 47,610   54,240     34,546   39,345     14,136   17,411     880   1,078  
Finance income (633 ) (1,176 )   (1,810 ) (2,482 )   (717 ) (2,234 )   (57 ) (54 )
Net result on the disposal of non-current assets, impairment of goodwill and other non-current assets, write-off of accounts receivable, provision (reversal of provision) for doubtful accounts and write-off of inventories to net realisable value 7,334   8,447     4,443   2,584     2,406   5,389     486   474  
Loss (profit) after tax for the year from discontinued operations, net -   426     -   -     -   406     -   20  
Net result on the disposal of subsidiaries (470 ) (194 )   (470 ) -     -   (194 )   -   -  
Profit attributable to non-controlling interests 1,013   1,706     407   511     417   1,056     189   139  
Income tax expense (benefit) 3,150   4,893     2,023   5,019     800   (265 )   327   139  
Pension service cost and actuarial loss, other related expenses (33 ) (171 )   (58 ) (198 )   22   26     3   2  
Other fines and penalties 2,551   1,396     941   556     1,512   742     98   98  
Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term (963 ) (115 )   (385 ) (19 )   (573 ) (95 )   (5 ) (1 )
Other one-off items -   1,819     -   1,819     -   -     -   -  
EBITDA 81,106   66,164     61,425   41,884     18,817   23,172     2,308   1,662  
EBITDA, margin 27 % 24 %   43 % 34 %   10 % 14 %   5 % 4 %
                       
Mln rubles 12m 2017 12m 2016   12m 2017 12m 2016   12m 2017 12m 2016   12m 2017 12m 2016
Profit (loss) attributable to equity shareholders of Mechel PAO 11,557   7,126     18,188   1,797     (5,130 ) 6,399     (59 ) (517 )
Add:                      
Impairment of goodwill and other non-current assets 6,081   5,202     3,801   1,336     2,280   3,866     -   -  
Loss (profit) after tax for the year from discontinued operations, net -   426     -   -     -   406     -   20  
Net result on the disposal of subsidiaries (470 ) (194 )   (470 ) -     -   (194 )   -   -  
Effect on loss attributable to non-controlling interests (453 ) (109 )   (240 ) -     (213 ) (109 )   -   -  
Foreign exchange (gain) loss, net (4,237 ) (25,947 )   (4,379 ) (14,960 )   144   (10,904 )   (2 ) (83 )
Pension service cost and actuarial loss, other related expenses (33 ) (171 )   (58 ) (198 )   22   26     3   2  
Other fines and penalties 2,551   1,396     941   556     1,512   742     98   98  
Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term (963 ) (115 )   (385 ) (19 )   (573 ) (95 )   (5 ) (1 )
Other one-off items -   1,819     -   1,819     -   -     -   -  
Adjusted profit (loss), net of income tax 14,033   (10,567 )   17,398   (9,669 )   (1,958 ) 137     35   (481 )
                       
Operating profit 57,167   42,690     48,191   31,012     9,154   11,531     1,267   701  
Add:                      
Impairment of goodwill and other non-current assets 6,081   5,202     3,801   1,336     2,280   3,866     -   -  
Loss on write-off of non-current assets 321   1,953     135   863     145   1,089     41   1  
Pension service cost and actuarial loss, other related expenses (33 ) (171 )   (58 ) (198 )   22   26     3   2  
Other fines and penalties 2,551   1,396     941   556     1,512   742     98   98  
Other one-off items -   1,819     -   1,819     -   -     -   -  
Adjusted operating profit 66,087   52,889     53,010   35,388     13,113   17,254     1,409   802  
                       
*** including inter-segment operations                        
                       
                       
                       
  Consolidated Results   Mining Segment ***   Steel Segment ***   Power Segment ***
Mln rubles 4q 2017 3q 2017   4q 2017 3q 2017   4q 2017 3q 2017   4q 2017 3q 2017
Profit (loss) attributable to equity shareholders of Mechel PAO 443   6,120     1,316   6,175     (1,303 ) 487     522   (569 )
Add:                      
Depreciation, depletion and amortization 3,185   3,813     1,716   2,185     1,353   1,528     116   101  
Foreign exchange (gain) loss, net (635 ) (1,797 )   (715 ) (2,168 )   81   372     (1 ) (1 )
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments 11,337   12,177     8,094   8,728     3,454   3,709     215   216  
Finance income (140 ) (51 )   (407 ) (361 )   (145 ) (150 )   (13 ) (12 )
Net result on the disposal of non-current assets, impairment of goodwill and other non-current assets, write-off of accounts receivable, provision (reversal of provision) for doubtful accounts and write-off of inventories to net realisable value 6,531   (454 )   3,933   11     2,418   (523 )   180   58  
Net result on the disposal of subsidiaries 4   (478 )   4   (478 )   -   -     -   -  
Profit (loss) attributable to non-controlling interests 168   160     22   (207 )   36   269     110   96  
Income tax expense (benefit) 344   (821 )   134   (1,234 )   (31 ) 357     241   55  
Pension service cost and actuarial loss, other related expenses (128 ) 32     (133 ) 25     5   6     -   1  
Other fines and penalties 1,659   293     465   104     1,243   110     (49 ) 79  
Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term (802 ) (81 )   (331 ) (17 )   (469 ) (64 )   (2 ) (1 )
Other one-off items -   -     -   -     -   -     -   -  
EBITDA 21,966   18,913     14,098   12,764     6,642   6,101     1,319   23  
EBITDA, margin 29 % 26 %   41 % 39 %   15 % 13 %   11 % 0 %
                       
Mln rubles 4q 2017 3q 2017   4q 2017 3q 2017   4q 2017 3q 2017   4q 2017 3q 2017
Profit (loss) attributable to equity shareholders of Mechel PAO 443   6,120     1,316   6,175     (1,303 ) 487     522   (569 )
Add:                      
Impairment of goodwill and other non-current assets 6,081   -     3,801   -     2,280   -     -   -  
Net result on the disposal of subsidiaries 4   (478 )   4   (478 )   -   -     -   -  
Effect on loss attributable to non-controlling interests (453 ) -     (240 ) -     (213 ) -     -   -  
Foreign exchange (gain) loss, net (635 ) (1,797 )   (715 ) (2,168 )   81   372     (1 ) (1 )
Pension service cost and actuarial loss, other related expenses (128 ) 32     (133 ) 25     5   6     -   1  
Other fines and penalties 1,659   293     465   104     1,243   110     (49 ) 79  
Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term (802 ) (81 )   (331 ) (17 )   (469 ) (64 )   (2 ) (1 )
Other one-off items -   -     -   -     -   -     -   -  
Adjusted profit (loss), net of income tax 6,169   4,089     4,167   3,641     1,624   911     470   (491 )
                       
Operating profit (loss) 10,752   15,738     8,116   10,874     1,663   5,041     1,066   (203 )
Add:                      
Impairment of goodwill and other non-current assets 6,081   -     3,801   -     2,280   -     -   -  
Loss on write-off of non-current assets 170   4     69   4     91   -     10   -  
Pension service cost and actuarial loss, other related expenses (128 ) 32     (133 ) 25     5   6     -   1  
Other fines and penalties 1,659   293     465   104     1,243   110     (49 ) 79  
Other one-off items -   -     -   -     -   -     -   -  
Adjusted operating profit (loss) 18,534   16,067     12,318   11,007     5,282   5,157     1,027   (123 )
                       
*** including inter-segment operations                      
                       

Attachment B
 
CONSOLIDATED STATEMENT OF PROFIT (LOSS) AND OTHER COMPREHENSIVE INCOME (LOSS)
(All amounts are in millions of Russian rubles, unless stated otherwise)   Year ended December 31,   Year ended December 31,
    2017     2016  
         
Continuing operations        
Revenue   299,113     276,009  
Cost of sales   (160,356 )   (146,322 )
Gross profit   138,757     129,687  
         
Selling and distribution expenses   (55,686 )   (56,233 )
Loss on write-off of non-current assets   (321 )   (1,953 )
Impairment of goodwill and other non-current assets   (6,081 )   (5,202 )
Provision for doubtful accounts   (332 )   (758 )
Taxes other than income taxes   (4,967 )   (5,913 )
Administrative and other operating expenses   (15,590 )   (18,791 )
Other operating income   1,387     1,853  
Total selling, distribution and operating income and (expenses), net   (81,590 )   (86,997 )
Operating profit   57,167     42,690  
         
Finance income   633     1,176  
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments of RUB 1,161 million and RUB 6,013 million for the periods ended December 31, 2017 and 2016, respectively   (47,610 )   (54,240 )
Foreign exchange gain (loss), net   4,237     25,947  
Share of profit (loss) of associates, net   18     (17 )
Other income   1,495     598  
Other expenses   (220 )   (2,003 )
Total other income and (expense), net   (41,447 )   (28,539 )
Profit before tax from continuing operations   15,720     14,151  
         
Income tax expense   (3,150 )   (4,893 )
Profit for the year from continuing operations   12,570     9,258  
         
Discontinued operations        
(Loss) profit after tax for the year from discontinued operations, net   -     (426 )
Profit for the year   12,570     8,832  
         
Attributable to:        
Equity shareholders of Mechel PAO   11,557     7,126  
Non-controlling interests   1,013     1,706  
         
Other comprehensive income        
Other comprehensive income to be reclassified to profit or loss in subsequent periods, net of income tax:   313     430  
Exchange differences on translation of foreign operations   313     431  
Net loss on available for sale financial assets   -     (1 )
Other comprehensive income (loss) not to be reclassified to profit or loss in subsequent periods, net of income tax:   145     (23 )
Re-measurement of defined benefit plans   145     (23 )
Other comprehensive income for the year, net of tax   458     407  
         
Total comprehensive income for the year, net of tax   13,028     9,239  
         
Attributable to:        
Equity shareholders of Mechel PAO   12,012     7,529  
Non-controlling interests   1,016     1,710  
         
Earnings (loss) per share        
Weighted average number of common shares   416,270,745     416,270,745  
Basic and diluted, profit for the year attributable to common equity shareholders of Mechel PAO   27.76     17.12  
Earnings per share from continuing operations (Russian rubles per share), basic and diluted   27.76     17.99  
Loss per share from discontinued operations (Russian rubles per share)   -     (0.87 )
             

         
CONSOLIDATED STATEMENT OF FINANCIAL POSITION        
(All amounts are in millions of Russian rubles)        
    December 31, 2017   December 31, 2016
         
Assets        
Current assets        
Inventories   37,990     35,227  
Income tax receivables   107     686  
Trade and other receivables   18,762     19,054  
Other current assets   7,589     6,942  
Other current financial assets   562     167  
Cash and cash equivalents   2,452     1,689  
Total current assets   67,462     63,765  
         
Non-current assets        
Property, plant and equipment   197,875     204,353  
Mineral licenses   33,240     36,099  
Goodwill and other intangible assets   19,211     18,355  
Investments in associates   283     265  
Deferred tax assets   96     1,502  
Other non-current assets   758     891  
Non-current financial assets   202     235  
Total non-current assets   251,665     261,700  
Total assets   319,127     325,465  
         
Equity and liabilities        
Current liabilities        
Interest-bearing loans and borrowings, including interest payable, fines and penalties on overdue amounts of RUB 41,992 million and RUB 38,594 million as of December 31, 2017 and 2016, respectively   422,533     434,165  
Trade and other payables   33,469     40,985  
Finance lease liabilities   7,476     10,175  
Income tax payable   4,578     2,552  
Taxes and similar charges payable other than income tax   6,696     9,195  
Advances received   4,385     3,815  
Other current financial liabilities   734     -  
Other current liabilities   69     19  
Pension obligations   849     944  
Provisions   3,359     3,496  
Total current liabilities   484,148     505,346  
         
Non-current liabilities        
Interest-bearing loans and borrowings   17,360     11,644  
Finance lease liabilities   1,878     421  
Income tax payable   -     540  
Other non-current financial liabilities   40,916     36,740  
Other non-current liabilities   138     159  
Pension obligations   3,512     3,501  
Provisions   3,814     3,420  
Deferred tax liabilities   11,494     16,282  
Total non-current liabilities   79,112     72,707  
Total liabilities   563,260     578,053  
         
Equity        
Common shares   4,163     4,163  
Preferred shares   833     833  
Additional paid-in capital   24,378     28,326  
Accumulated other comprehensive income   1,303     848  
Accumulated deficit   (283,743 )   (294,444 )
Equity attributable to equity shareholders of Mechel PAO   (253,066 )   (260,274 )
Non-controlling interests   8,933     7,686  
Total equity   (244,133 )   (252,588 )
Total equity and liabilities   319,127     325,465  
             

 
CONSOLIDATED STATEMENT OF CASH FLOWS
(All amounts are in millions of Russian rubles)   Year ended December 31,   Year ended December 31,
    2017     2016  
         
Cash flows from operating activities        
Profit for the year   12,570     8,832  
Less loss (profit) after tax for the year from discontinued operations, net   -     426  
Profit for the year from continuing operations   12,570     9,258  
Adjustments to reconcile profit from continuing operations to net cash provided by operating activities:        
Depreciation   12,555     11,813  
Depletion and amortisation   1,672     1,901  
Foreign exchange (gain) loss, net   (4,237 )   (25,947 )
Deferred tax (income) expense   (3,401 )   5,104  
Provision for doubtful accounts   332     758  
Write-off of accounts receivable   109     113  
Write-off of inventories to net realisable value   470     364  
Revision in estimated cash flows of rehabilitation provision   -     (375 )
Loss on write-off of non-current assets   321     1,953  
Impairment of goodwill and other non-current assets   6,081     5,202  
Loss on disposal of non-current assets   21     57  
Gain on sale of investments   (2 )   (186 )
Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term   (963 )   (115 )
Curtailment and remeasurement of pension obligations   (175 )   (325 )
Pension service cost and actuarial loss, other related expenses   142     154  
Finance income   (633 )   (1,176 )
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments of RUB 1,161 million and RUB 6,031 million for the periods ended December 31, 2017 and 2016, respectively   47,610     54,240  
VEB commissions write-off   -     1,411  
Gain on royalty and other proceeds associated with disposal of Bluestone   (474 )   (121 )
Provision for non-recoverable advances to pension funds   -     408  
Other   281     51  
         
Changes in working capital items:        
Trade and other receivables   (318 )   (5,542 )
Inventories   (4,508 )   (1,070 )
Trade and other payables   (3,435 )   (4,259 )
Advances received   625     588  
Taxes payable and other liabilities   4,064     2,368  
Other current assets   (895 )   (883 )
         
Income tax paid   (4,530 )   (2,101 )
Net operating cash flows from discontinued operations   -     (436 )
         
Net cash provided by operating activities   63,282     53,207  
           
Cash flows from investing activities        
Loans issued and other investments   (525 )   (133 )
Interest received   165     128  
Royalty and other proceeds associated with disposal of Bluestone   474     103  
Proceeds from disposal of subsidiaries, net of cash disposed   94     145  
Purchases of available for sale securities   -     (4 )
Proceeds from loans issued and other investments   144     31  
Proceeds from disposals of property, plant and equipment   328     285  
Purchases of property, plant and equipment   (6,460 )   (4,742 )
Purchases of intangible assets   (771 )   -  
Interest paid, capitalized   (587 )   (782 )
Net cash used in investing activities   (7,138 )   (4,969 )
         
Cash flows from financing activities        
Proceeds from loans and borrowings   23,200     4,002  
Repayment of loans and borrowings   (35,033 )   (42,322 )
Dividends paid to shareholders of Mechel PAO   (856 )   (5 )
Dividends paid to non-controlling interests   (122 )   (2 )
Interest paid, including fines and penalties   (31,948 )   (33,872 )
Acquisition of non-controlling interests in subsidiaries   (3,358 )   -  
Proceeds from sales of 49% stakes in Elga coal complex, with put-option granted   -     34,300  
Repayment of obligations under finance lease   (3,513 )   (3,238 )
Deferred payments for acquisition of assets   (455 )   -  
Deferred consideration paid for the acquisition of subsidiaries in prior periods   (3,652 )   (4,732 )
Net cash used in financing activities   (55,737 )   (45,869 )
         
Effect of exchange rate changes on cash and cash equivalents   (637 )   (1,807 )
         
Net (decrease) increase in cash and cash equivalents   (230 )   562  
         
Cash and cash equivalents at beginning of period   1,689     3,079  
Cash and cash equivalents, net of overdrafts at beginning of period   1,453     891  
Cash and cash equivalents at end of period   2,452     1,689  
Cash and cash equivalents, net of overdrafts at end of period   1,223     1,453  
             

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