Moscow, Russia - 14 June 2018 - Metalloinvest ('the Company'), a leading global iron ore and HBI producer, and one of the regional producers of high-quality steel, publishes its IFRS financial results for the first quarter ended 31 March 2018.

Management comments

Andrey Varichev, CEO of Management Company Metalloinvest, commented:

"We have recorded strong Q1 results and further strengthened our financial position, due to an increase in our high value-added product sales and, consequently, the proportion of total shipments of these products in our sales structure. This was also supported by favourable market conditions and the implementation of our operational efficiency programme. Our EBITDA margin has reached its highest level in the last five years, while we continue to modernise our production facilities and digitally transform our business processes, to create further opportunities for future growth."

FINANCIAL HIGHLIGHTS

- Revenue USD 1,813 mn (+19.3% y-o-y)

- EBITDA USD 675 mn (+28.1%)

- EBITDA margin 37.2% vs. 34.7% in Q1 2017

- Net Income USD 416 mn (+6.4%)

- Net Debt USD 4,069 mn (+0.3% compared to 31 December 2017)

- Net Debt / EBITDA LTM 1.8x vs 1.9x at 31 December 2017

- Capital Expenditure USD 95 mn (+53.2%)

KEY CORPORATE HIGHLIGHTS

Operational and commercial highlights

- Completion of modernisation of vacuum degasser at the EAF at Ural Steel

- Launch of commercial operations at concentrate intake facility at MGOK

- Second Coordination meeting with KAMAZ

- Creation of the Company's electronic product catalogue

Financing

- Signing of an agreement for a USD 240 mn pre-export finance facility (the 'PXF-2018')

- Keeping its series 02 and 03 bonds for a total amount of RUB 10 bn in the market for 5 years with a coupon rate set at 7.65%, following the successful execution of a put option

- Revision of the Company's corporate credit rating outlook by Moody's Investors Service to Positive from Stable, confirmation of its ' Ba2' rating

 

Full press release is available at http://www.metalloinvest.com/en/investors/financial-results/

 

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For further information, please contact:

Artem Lavrischev
Director of Investor Relations and Corporate Ratings

E: ir@metalloinvest.com

T: +7 (495) 981-55-55

 

 

 

Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The Company has the world's second-largest measured iron ore reserve base and is one of the lowest-cost iron ore producers. Metalloinvest is wholly owned by USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (49%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (9%).