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NLMK Group Announces Financial Results for Q4 and 2019

Steel News - Published on Thu, 13 Feb 2020

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NLMK Group announced its Q4 and 2019 financial results. NLMK Group CFO Mr Shamil Kurmashov said “The situation on steel product markets in 2019 was rather challenging. H2 2019 saw prices fall below the cycle average. The dive was so deep we estimate that 80% of global HRC production was loss-making. The margins in the sector were further pressured by increasing prices for raw materials. Amid the low phase of the market NLMK carried out major overhauls at its blast furnace and BOF operations, resulting in a 3% yoy reduction in steel sales in 2019.

Revenue decreased by 12% YoY to USD 10.6 billion in 2019 amid falling steel product prices and lower sales due to major repairs at NLMK Lipetsk BF and BOF operations. EBITDA totalled USD 2.6 billion down by 29% YoY amid a decrease in revenue and narrower steel/raw material spreads. EBITDA margin was down to 24%

Revenue decreased by 10% QoQ to USD 2.3 billion in Q4 of 2019 amid a decrease in average sales prices and an increase in the share of semi-finished products in the sales portfolio. EBITDA decreased to USD 480 million down 27% QoQ due to an outstripping decrease in steel prices relative to raw materials. EBITDA margin decreased to 21%

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Posted By : Rabi Wangkhem on Thu, 13 Feb 2020
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