Russia's NLMK Q1 net profit up 85 pct y/y on weaker rouble, improved exports

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MOSCOW, May 21 (Reuters) - Russia's largest steelmaker NLMK said on Thursday its first-quarter net profit rose 85 percent year-on-year to $321 million, helped by a weaker rouble and an increase in lucrative export sales.

NLMK and other Russian steel producers have benefited from lower costs in 2015 following the depreciation of the rouble and a collapse in the price of iron ore and coking coal, making dollar-denominated export sales increasingly profitable.

Chief Financial Officer Grigory Fedorishin said exports made up 64 percent of the company's total sales in the first three months of 2015, compared to 59 percent in the previous quarter.

"Sales increased by 3 percent quarter-on-quarter to 4 million tonnes, primarily driven by redirecting a part of product sales to export markets," he said.

The company, controlled by businessman Vladimir Lisin, said it expected sales to increase further in the next quarter due to a seasonal improvement in domestic demand.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at $638 million, up 36 percent compared to the previous year, the company said. Revenue slipped 16 percent to $2.2 billion.

Following publication of the results on Thursday, NLMK's shares were up 3 percent on the Moscow Exchange.

NLMK produced 15.9 million tonnes of steel in 2014, overtaking competitor Evraz (LSE: EVR.L - news) to become Russia's largest steelmaker.

(Reporting by Jack Stubbs; Editing by Gareth Jones)