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ERAMET announced high operating income for 2018

Metal News - Published on Fri, 22 Feb 2019

Image Source: SteelGuru
Eramet announced that high current operating income for 2018, at €581m, driven by a favourable price environment.

•Sales up 5% over 2018 to EUR 3,825 million in a context of rising metal prices and favourable markets for mineral sands.

•New operating records for the Mining and Metals division2, confirming the Group's ambitions:

o4.3 million tonnes of manganese ore produced,

o1.2 million tonnes of nickel ore exported out of New Caledonia in 2018,

o7743 thousand tonnes of mineral sands concentrate produced.

•EBITDA at EUR 843 million, in line with the guidance provided. Second year of strong value creation with a 22% ROCE.

•High current operating income, at EUR 581 million, with contrasting performances by activity notably production difficulties in Nickel activity, and an unfavourable market environment in the main sectors of the High Performance Alloys division4.

•Net income - Group share at EUR 53 million, including a non-current provision of EUR 65 million to factor in the cost of the quality process review within the High Performance Alloys division.

•Net debt of EUR 717 million, gearing5 of 38%, reflecting the acquisition of TiZir.

•Dividend payment to shareholders in respect of the 2018 financial year: an amount of EUR 0.60 per share maintaining a 30% pay-out ratio will be submitted for approval at the General Shareholders’ meeting on 23 May, 2019.

•A key milestone in 2019 for the major growth projects of the Group:

oOrganic growth in manganese ore with a production target of 4.5 million tonnes as of 2019 and decision expected to increase volumes by end-2023 to 7 million tonne,

oExpected decision to be made on the lithium project in Argentina reflecting the acceleration of the diversification strategy in metals for the energy transition.

•Intrinsic growth and productivity gains in 2019, offsetting the current deterioration in market conditions, thereby resulting in forecast EBITDA close to that of 2018.

Source :

Posted By : Rabi Wangkhem on Fri, 22 Feb 2019
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