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EVRAZ Announces Financial Results for H1 2019

Steel News - Published on Mon, 12 Aug 2019

Image Source: Evraz
EVRAZ plc announced its unaudited interim results for the six months ended 30 June 2019. EVRAZ’ Chief Executive Officer, Mr Alexander Frolov, said that “We have finished the first half of the year with a set of rather healthy results, supported by positive trends in our key product markets. In Russia, we saw a recovery of the construction activity and, as a result, an increase in the consumption of most of our products. Our EBITDA reached almost USD1.5 billion, a 22% decline in year-on-year terms, amid depressed vanadium prices and lower average coking coal prices. This resulted in a slight increase of the net debt to LTM EBITDA ratio to 1.1x times as at 30 June 2019, compared with 0.9 times as at 31 December 2018. The efficiency programme generated USD 111 million of additional EBITDA during the period, mostly through productivity growth, yield improvements and numerous savings projects. Together with customer focus initiatives, these amounted to USD 150 million in total. Our total CAPEX reached USD 309 million. Major investment projects are currently in the equipment supplier selection stage or the engineering phase. Overall, the Group invested USD 79 million in development CAPEX in the first half of 2019.”

Consolidated EBITDA totalled USD 1,482 million, down 22.2% from USD 1,906 million in H1 2018, driving the EBITDA margin down to 24.1% from 30.0% due to lower vanadium, coal and steel product prices.

EBITDA effect from cost-cutting and customer focus initiatives amounted to USD 150 million.

Net profit was USD 344 million, compared with USD 1,145 million in H1 2018.

The cash cost of steel and raw materials in Russia was mostly lower:
The cash cost of slabs decreased to USD 230 per tonne from USD 248per tonne in H1 2018
The cash cost of washed coking coal fell to USD 34 per tonne from USD 47per tonne in H1 2018
The cash cost of iron ore products was nearly flat at USD 38 per tonne (H1 2018: USD 37per tonne)

In Q2 2019 the US lifted the 25% Section 232 tariffs on steel imports from Canada and Canada removed its retaliatory tariffs. The US anti-dumping duty for imports of line pipe (16” or greater) produced in Canada was reduced from 24% to 12%.

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Posted By : Ratan Singh on Mon, 12 Aug 2019
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