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UPDATE 1-Write-offs deepen Russian miner Mechel's net loss
May 15, 2014 / 10:36 AM / 3 years ago

UPDATE 1-Write-offs deepen Russian miner Mechel's net loss

(Releads to focus on full-year results, adds quotes)

MOSCOW, May 15 (Reuters) - Indebted Russian miner Mechel said its net loss deepened last year due to more than $2 billion of write-offs the company made as it tried to turn its business around.

The coal miner and steelmaker, controlled by businessman Igor Zyuzin, has been hit by weak prices for its products, forcing it to sell loss-making assets and to negotiate a delayed debt payment with its creditors.

“In the past year, the group’s structure was subject to major transformation as part of our implementation of the revised strategy,” Oleg Korzhov, Mechel chief executive, said in a statement.

Its 2013 net loss widened to $2.9 billion from $1.7 billion the previous year due to write-offs related to discontinued operations, losses from asset sales, impairment of long-term assets and goodwill and bad-debt provisions.

Mechel, whose $8.6 billion net debt at April 30 was little changed from the end of December 2013, had halved its 2013 capital expenditure to $558 million, it said.

Russia’s second-largest lender VTB refinanced a 40 billion rouble ($1.15 billion) loan to the company in May, Mechel said in a separate statement on Thursday.

The company’s 2013 revenue fell by 19 percent to $8.6 billion. It sold Romanian steelmaking assets and chrome ore and ferrochrome producing assets in 2013. (Reporting by Polina Devitt; Editing by Erica Billingham)

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