METALLOINVEST ANNOUNCES H1 2019 IFRS FINANCIAL RESULTS
Moscow, Russia - 22 August 2019 - 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 half year ended 30 June 2019.
Management comments
Alexey Voronov, Finance Director of Management Company Metalloinvest, commented:
"In H1 2019, the industry was impacted by different dynamics of global prices for iron ore and steel. Metalloinvest's Mining Segment EBITDA increased by 25% to USD 1.3 bn. This was driven by the favourable iron ore pricing environment and the increase in the share of high value-added products in the Company's sales structure. Meanwhile, the Company's consolidated EBITDA decreased by 5% as a result of the significant decrease of Steel Segment profit following the decline in global steel prices. At the same time, the Company's consolidated EBITDA margin remained above 39%, which is the result of our work on costs control and optimised production planning in accordance with the market demand. The Company's leverage remains at a comfortable level - Net Debt / EBITDA LTM was 1.25x at the end of the reporting period. Long-term borrowings prevail in the loan portfolio structure owing to our constant optimisation work."
FINANCIAL HIGHLIGHTS
- Revenue USD 3,584 mn (-5.2% y-o-y)
- EBITDA USD 1,410 mn (-5.4%)
- EBITDA margin 39.3% vs. 39.5% in H1 2018
- Net Income USD 1,020 mn (+17.2%)
- Net Debt USD 3,581 mn (+6.6% compared to 31 December 2018)
- Net Debt / EBITDA LTM 1.25x vs. 1.14x as of 31 December 2018
- Capital Expenditure USD 221 mn (-5.6%)
PRODUCTION HIGHLIGHTS
- Iron ore 19.7 mn tonnes (-1.8%)
- Pellets 14.1 mn tonnes (+3.1%)
- HBI/DRI 4.0 mn tonnes (+0.7%)
- Hot metal 1.4 mn tonnes (-6.3%)
- Crude steel 2.4 mn tonnes (-2.7%)
KEY CORPORATE HIGHLIGHTS
Operational developments and capital expenditure
- Coordination meetings with United Metallurgical Company (OMK) and KAMAZ
- Launch of equipment installation for heat treatment facility at OEMK
- Purchase of new equipment for Lebedinsky GOK (LGOK) and Mikhailovsky GOK (MGOK)
- Commission of new reduction and calibration section at Rolling Mill 350 at OEMK
Financing
- Upgrade of the Company's corporate credit rating by S&P to BB+/Stable (from BB/Stable), Moody's to Ba1/Stable (from Ba2/Positive) and Fitch to BB+/Stable (from BB/Positive)
- Upgrade of the Company's credit rating by the Russian rating agency Expert RA to ruAA/Stable (from ruAA-/Positive)
- Opening of a sustainable finance credit line with ING Bank in the amount of up to USD 100 mn (or EUR equivalent)
- Partial refinancing of loan portfolio by signing a new loan agreement with Gazprombank in the amount of RUB 8.33 bn and by the placement of BO-09 series exchange RUB-denominated bonds in the amount of RUB 5 bn
- Partial redemption of the outstanding Eurobonds-2020 for the nominal value of USD 62 mn 114 thousands
- Improvement of the commercial terms for tranche B of PXF-2017 credit agreement
Social responsibility and corporate governance
- Signing of social partnership programmes with the administrations of the Kursk, Belgorod and Orenburg regions and the towns of Zheleznogorsk, Stary Oskol, Gubkin and Novotroitsk
- Election of the Company's Board of Directors
Full press release and financial statements are 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. The main beneficiaries of USM Holdings are Alisher Usmanov (49%) and Vladimir Skoch (30%).