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Metalloinvest announces financial results for full year 2016

Steel News - Published on Mon, 20 Mar 2017

Image Source: Metalloinvest
Metalloinvest a leading global iron ore and HBI producer, and a regional high quality steel producer, publishes its audited IFRS financial results for the full year ended 31 December 2016.

Financial highlights
1. Revenue USD 4,261 million (-3.0% y-o-y)
2. EBITDA USD 1,258 million (-12.2%)
3. EBITDA Margin 29.5% vs. 32.6% in 2015
4. Net Income USD 1,153 million vs. USD 218 million in 2015
5. Net Debt USD 3,161 million (-11.3% compared to 31 December 2015)
6. Net Debt / EBITDA 2.5x, flat vs. 31 December 2015
7. Capital Expenditure USD 290 million (-30.5%)
8. Total Assets USD 6,201 million (-6.3% compared to 31 December 2015)

Production highlights
1. Iron ore 40.7 million tonnes (+3.1%)
2. Pellets 25.2 million tonnes (+5.9%)
3. HBI/DRI 5.7 million tonnes (+4.8%)
4. Hot metal 3.0 million tonnes (+20.2%)
5. Crude steel 4.7 million tonnes (+3.6%)

Key corporate highlights

Operating activities and capital expenditure
1. Achievement of design capacity at Pellet Plant #3 at Mikhailovsky GOK
2. Launch of Blast Furnace #4 at Ural Steel after completion of major maintenance and modernisation works
3. Commissioning of second gas purification unit at OEMK’s electric arc furnace shop
4. Completion of cold tests at HBI-3 Plant at Lebedinsky GOK

Key contracts
1. Signing of a contract for the supply of iron ore concentrate with Industrial Metallurgical Holding
2. Signing of HBI supply contracts with MMK, TMK and ChelPipe
3. Signing of new long-term contracts with Aktobe Rail and Section Works for the supply of rail and shaped billets

1. Issue of BO-02, BO-07 and BO-08 series bonds for a total amount of RUB 20 bn
2. Raising of a USD 450 million pre-export finance facility (PXF) with a club of banks
3. Partial repayment of USD 600 million of PXF facilities ahead of schedule
4. Redemption of debut Eurobond issue for a nominal amount of USD 750 million
5. Confirmation of the Company’s long-term credit ratings at BB/Ba2 levels by Standard & Poor’s, Fitch and Moody’s, and at BBB+ by Dagong

Corporate governance
1. Election of the Board of Directors and appointment of new committee members
2. Consolidation of 100% of the shares of JSC Holding Company Metalloinvest into USM Metalloinvest LLC, registered in the Russian Federation

Mr Andrey Varichev CEO of Management Company Metalloinvest commented that “In 2016, Metalloinvest achieved record production volumes of iron ore products at Lebedinsky GOK and Mikhailovsky GOK, as well as crude steel at OEMK and hot metal at Ural Steel, reaching the highest levels in the Company’s history. The increase in output was achieved as a result of the timely implementation of development projects, such as Pellet Plant #3 at Mikhailovsky GOK, and the modernisation of existing facilities, including Blast Furnace #4 at Ural Steel and the gas purification system at OEMK. We have ambitious plans for 2017, notably the launch of HBI-3 Plant, one of the largest such facilities in the world, at Lebedinsky GOK. Metalloinvest’s strong competitive position combined with a recovery in the market in the second half of 2016 enabled the Company to demonstrate the stability of its financial profile. We expect an increase in the share of high value-added products, as well as continued stability in global iron ore prices will have a positive effect on the Company’s results.”

Mr Alexey Voronov Finance Director of Management Company Metalloinvest, added that “During the reporting period, we undertook substantial measures to improve our debt maturity schedule. The issue of rouble-denominated bonds, refinancing and partial early repayment of pre-export facilities and the redemption of the Company’s debut Eurobonds allowed us to reduce our scheduled maturities in 2017 to almost zero. The Company attentively monitors the capital markets and bank lending opportunities on an ongoing basis. In the upcoming year, we will continue to work on maintaining the high quality of our debt portfolio and optimising our repayment schedule.”

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Posted By : Rabi Wangkhem on Mon, 20 Mar 2017
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