EARNINGS SURVEY-Severstal H1 net seen up 42 pct at $1.42 bln
* Severstal (CHMFq.L) H1 results
* Sept. 4, 0600 GMT
* Net profit average forecast $1.42 billion
MOSCOW, Sept 3 (Reuters) - Severstal (CHMF.MM), Russia's largest steel maker, is expected to post a 42 percent rise in first-half 2008 net profit on higher steel and iron ore production and prices, a Reuters survey of eight analysts showed on Wednesday.
Majority owned by billionaire Alexei Mordashov, Severstal is expected to record a net profit of $1.42 billion, the survey showed. The net profit forecasts ignored the $652 million sale of coal mines in western Siberia to ArcelorMittal (MT.N) (ISPA.AS). Analysts forecast revenues rising 35 percent to $10.42 billion and a 30 percent rise to $2.73 billion. earnings before interest, taxation, depreciation and amortisation (EBITDA).
Severstal will report its results on Sept. 4.
Renaissance Capital analysts said the increase in sales volumes was driven mainly by the consolidation of Sparrows Point, a U.S. steel mill acquired this year as Severstal widens its influence in the North American market.
Severstal also benefits from being able to supply all of the iron ore and coal requirements of its Russian steel operations.
"The enhancement of existing mines, as well as development of new deposits, should enable Severstal to benefit from the rising demand for raw materials and to maintain self-sufficiency under its organic growth plans," Renaissance Capital said.
Severstal's peers have posted record first-half net profits. Evraz Group (HK1q.L) earned $2.04 billion, Novolipetsk Steel (NLMKq.L) $1.53 billion and Magnitogorsk Iron and Steel Works (MAGNq.L) $1.03 billion in the six months to June 30.
Analysts supplied the following forecasts for Severstal's results (in millions of dollars unless stated):
Revenues EBITDA EBITDA margin Net profit
(pct) Average 10,423 2,727 26.1 1,423 Median 10,471 2,710 26.0 1,419 Minimum 10,069 2,655 25.0 1,352 Maximum 10,766 2,796 28.0 1,500 H1 2007 7,711 2,094 27.0 999 These banks participated in the survey: Credit Suisse, Goldman Sachs, ING, UBS, UniCredit Aton, Renaissance Capital, Troika Dialog, UralSib. (Reporting by Polina Devitt, writing by Robin Paxton; Editing by Jason Neely)
