Evraz, the Russian steelmaker partly controlled by Chelsea FC owner Roman Abramovich, has shrugged off immediate worries about sanctions and the outlook for its assets in strife-hit Ukraine.
The company returned to the black in the first half of the year, recording a net profit of $1m after a $146m loss in the same period in 2013. But the profit came in below expectations, and included a foreign exchange loss of $180m and an impairment charge of $147m. Evraz shares currently up 0.4p at 114.3p.
The company warned in April that the current conflict in Ukraine could affect its business, but now says the unrest has not hit its assets or operations so far. Nor has it been subject to sanctions introduced by a number of countries. But it added:
With key assets located in Russia and Ukraine, Evraz is not immune to geopolitical risks. We are watching the developments in the region closely and are consulting legal and other advisers, nationally and internationally, to analyse the risks and prepare, to the extent feasible, contingency plans.
Analysts said around 6% of the company's revenues come from its Ukrainian business.
Elsewhere Russian gold and silver miner Polymetal also returned to profit, making $100m in the first half compared to a $255m loss in the same period last year. It said it expected a better second half if precious metal prices remained roughly at current levels.
Polymetal has put on 14.5p to 537.5p.
