Latest news with #Severstal
Yahoo
21-07-2025
- Business
- Yahoo
Russia's Severstal blames high rates and low prices for 55% Q2 profit plunge
MOSCOW (Reuters) -Severstal, one of Russia's top steelmakers, blamed the high key interest rate for a 15% drop in demand for metals in the first half of 2025, which, along with low prices, resulted in a 55% fall in the company's net profit in the second quarter. Last year, the central bank hiked its key interest rate to 21%, the highest level since the early 2000s, as it fights inflation. The regulator started cutting rates last month and is expected to cut further at a rate-setting meeting this week. The central bank's tight monetary policy led to a sharp economic slowdown in Russia, with the construction industry—one of the main consumers of steel—hit particularly hard. "The second quarter of 2025 was extremely challenging for both the metals industry and the entire Russian economy," said Severstal's CEO Alexander Shevelev. The company said it will not pay dividends in order to maintain financial stability. "The high key interest rate is restraining demand for metal products, which decreased by 15% year-on-year in the first half of the year due to reduced consumption in the construction, engineering, and energy sectors," Shevelev added. Shevelev stressed that the strong rouble, which rallied by 45% against the U.S. dollar this year, was restricting its access to export markets. Shevelev earlier said that some steel factories in Russia could close down to balance the market. The company welcomed the expected interest rate cut at the meeting on July 25, stressing in its financial results' presentation that the cut will have a positive impact on the demand for steel. Net profit in the second quarter fell to 15.7 billion roubles ($200.3 million), down 55% year-over-year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
21-07-2025
- Business
- Reuters
Russia's Severstal blames high rates and low prices for 55% Q2 profit plunge
MOSCOW, July 21 (Reuters) - Severstal, one of Russia's top steelmakers, blamed the high key interest rate for a 15% drop in demand for metals in the first half of 2025, which, along with low prices, resulted in a 55% fall in the company's net profit in the second quarter. Last year, the central bank hiked its key interest rate to 21%, the highest level since the early 2000s, as it fights inflation. The regulator started cutting rates last month and is expected to cut further at a rate-setting meeting this week. The central bank's tight monetary policy led to a sharp economic slowdown in Russia, with the construction industry—one of the main consumers of steel—hit particularly hard. "The second quarter of 2025 was extremely challenging for both the metals industry and the entire Russian economy," said Severstal's CEO Alexander Shevelev. The company said it will not pay dividends in order to maintain financial stability. "The high key interest rate is restraining demand for metal products, which decreased by 15% year-on-year in the first half of the year due to reduced consumption in the construction, engineering, and energy sectors," Shevelev added. Shevelev stressed that the strong rouble, which rallied by 45% against the U.S. dollar this year, was restricting its access to export markets. Shevelev earlier said that some steel factories in Russia could close down to balance the market. The company welcomed the expected interest rate cut at the meeting on July 25, stressing in its financial results' presentation that the cut will have a positive impact on the demand for steel. Net profit in the second quarter fell to 15.7 billion roubles ($200.3 million), down 55% year-over-year.
Yahoo
04-07-2025
- Business
- Yahoo
Russia's richest people raked in record dividends last year
Russia's richest people received record dividends in 2024, according to Forbes Russia. Top earners are from commodity-linked firms, underscoring Russia's status as a resource powerhouse. The top earner was Alexei Mordashov, who received 201.8 billion rubles in dividends from Severstal. Russia's richest people collected record-high dividends in 2024, even as the country's economy showed clear signs of slowing, according to Forbes Russia on Thursday. Total dividend payouts to the 50 wealthiest Russians reached a record 1.769 trillion rubles, or $22.3 billion, according to the publication. That's a sharp increase from each of the previous two years, when less than 1.4 trillion rubles were distributed. The top 10 recipients last year drew their payouts from commodity-linked companies, highlighting the enduring power of oil, gas, and metals in Russia's economy. The top earner was steel magnate Alexei Mordashov and his family. They received 201.8 billion rubles in dividends from Severstal, Russia's third-largest steelmaker. The tycoon did not feature in the dividend ranking last year. Mordashov is the country's second-richest individual, with an estimated fortune of $28.6 billion, according to Forbes Russia. Second on Forbes' dividend list was Vagit Alekperov, who earned 201 billion rubles from a 28% stake in oil giant Lukoil. Alekperov, who topped the dividend list last year with 177.4 billion rubles, is now Russia's richest person, with a net worth of $28.7 billion. Another steel tycoon, Vladimir Lisin, came in third, earning 15.8 billion rubles in dividends from Novolipetsk Steel and the Volga Shipping Company. All three feature on Bloomberg's list of the world's richest people: Alekperov in the 78th slot, Mordashov in 86th place, and Lisin in 88th. While the country's wealthiest individuals enjoyed booming payouts last year, the broader Russian economy appears to be faltering. Russia's manufacturing activity shrank in June at its fastest pace since March 2022, according to S&P Global. Factories shed jobs and cut purchasing activity, and business confidence fell to its lowest level since October 2022. The downturn was driven by falling new orders, sluggish client demand, and a strong ruble, which is hurting export competitiveness. Despite Russia's economic resilience over the past few years, there are signs of a sharp slowdown emerging. Russia's economy minister, Maxim Reshetnikov, warned last month that the country was "on the brink" of a recession. Russia's GDP grew 1.4% in the first quarter of the year from a year ago, according to Rosstat, the country's official statistics service. This is a sharp slowdown from the 4.5% growth it posted in the fourth quarter of last year. In 2024, Russia's economy grew 4.3% for the full year. On Wednesday, Russia's economic development ministry said the country's GDP grew 1.2% in May from a year ago, slowing from a 1.9% growth in April. Read the original article on Business Insider
Yahoo
04-07-2025
- Business
- Yahoo
Russia's richest people raked in record dividends last year
Russia's richest people received record dividends in 2024, according to Forbes Russia. Top earners are from commodity-linked firms, underscoring Russia's status as a resource powerhouse. The top earner was Alexei Mordashov, who received 201.8 billion rubles in dividends from Severstal. Russia's richest people collected record-high dividends in 2024, even as the country's economy showed clear signs of slowing, according to Forbes Russia on Thursday. Total dividend payouts to the 50 wealthiest Russians reached a record 1.769 trillion rubles, or $22.3 billion, according to the publication. That's a sharp increase from each of the previous two years, when less than 1.4 trillion rubles were distributed. The top 10 recipients last year drew their payouts from commodity-linked companies, highlighting the enduring power of oil, gas, and metals in Russia's economy. The top earner was steel magnate Alexei Mordashov and his family. They received 201.8 billion rubles in dividends from Severstal, Russia's third-largest steelmaker. The tycoon did not feature in the dividend ranking last year. Mordashov is the country's second-richest individual, with an estimated fortune of $28.6 billion, according to Forbes Russia. Second on Forbes' dividend list was Vagit Alekperov, who earned 201 billion rubles from a 28% stake in oil giant Lukoil. Alekperov, who topped the dividend list last year with 177.4 billion rubles, is now Russia's richest person, with a net worth of $28.7 billion. Another steel tycoon, Vladimir Lisin, came in third, earning 15.8 billion rubles in dividends from Novolipetsk Steel and the Volga Shipping Company. All three feature on Bloomberg's list of the world's richest people: Alekperov in the 78th slot, Mordashov in 86th place, and Lisin in 88th. While the country's wealthiest individuals enjoyed booming payouts last year, the broader Russian economy appears to be faltering. Russia's manufacturing activity shrank in June at its fastest pace since March 2022, according to S&P Global. Factories shed jobs and cut purchasing activity, and business confidence fell to its lowest level since October 2022. The downturn was driven by falling new orders, sluggish client demand, and a strong ruble, which is hurting export competitiveness. Despite Russia's economic resilience over the past few years, there are signs of a sharp slowdown emerging. Russia's economy minister, Maxim Reshetnikov, warned last month that the country was "on the brink" of a recession. Russia's GDP grew 1.4% in the first quarter of the year from a year ago, according to Rosstat, the country's official statistics service. This is a sharp slowdown from the 4.5% growth it posted in the fourth quarter of last year. In 2024, Russia's economy grew 4.3% for the full year. On Wednesday, Russia's economic development ministry said the country's GDP grew 1.2% in May from a year ago, slowing from a 1.9% growth in April. Read the original article on Business Insider 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
04-07-2025
- Business
- Yahoo
Russia's richest people raked in record dividends last year
Russia's richest people received record dividends in 2024, according to Forbes Russia. Top earners are from commodity-linked firms, underscoring Russia's status as a resource powerhouse. The top earner was Alexei Mordashov, who received 201.8 billion rubles in dividends from Severstal. Russia's richest people collected record-high dividends in 2024, even as the country's economy showed clear signs of slowing, according to Forbes Russia on Thursday. Total dividend payouts to the 50 wealthiest Russians reached a record 1.769 trillion rubles, or $22.3 billion, according to the publication. That's a sharp increase from each of the previous two years, when less than 1.4 trillion rubles were distributed. The top 10 recipients last year drew their payouts from commodity-linked companies, highlighting the enduring power of oil, gas, and metals in Russia's economy. The top earner was steel magnate Alexei Mordashov and his family. They received 201.8 billion rubles in dividends from Severstal, Russia's third-largest steelmaker. The tycoon did not feature in the dividend ranking last year. Mordashov is the country's second-richest individual, with an estimated fortune of $28.6 billion, according to Forbes Russia. Second on Forbes' dividend list was Vagit Alekperov, who earned 201 billion rubles from a 28% stake in oil giant Lukoil. Alekperov, who topped the dividend list last year with 177.4 billion rubles, is now Russia's richest person, with a net worth of $28.7 billion. Another steel tycoon, Vladimir Lisin, came in third, earning 15.8 billion rubles in dividends from Novolipetsk Steel and the Volga Shipping Company. All three feature on Bloomberg's list of the world's richest people: Alekperov in the 78th slot, Mordashov in 86th place, and Lisin in 88th. While the country's wealthiest individuals enjoyed booming payouts last year, the broader Russian economy appears to be faltering. Russia's manufacturing activity shrank in June at its fastest pace since March 2022, according to S&P Global. Factories shed jobs and cut purchasing activity, and business confidence fell to its lowest level since October 2022. The downturn was driven by falling new orders, sluggish client demand, and a strong ruble, which is hurting export competitiveness. Despite Russia's economic resilience over the past few years, there are signs of a sharp slowdown emerging. Russia's economy minister, Maxim Reshetnikov, warned last month that the country was "on the brink" of a recession. Russia's GDP grew 1.4% in the first quarter of the year from a year ago, according to Rosstat, the country's official statistics service. This is a sharp slowdown from the 4.5% growth it posted in the fourth quarter of last year. In 2024, Russia's economy grew 4.3% for the full year. On Wednesday, Russia's economic development ministry said the country's GDP grew 1.2% in May from a year ago, slowing from a 1.9% growth in April. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
