METALLOINVEST ANNOUNCES IFRS FINANCIAL RESULTS FOR H1 2020

Moscow, Russia - 20 August 2020 - Metalloinvest ('the Company'), a leading global iron ore and HBI producer, and one of the regional producers of high-quality steel, today announces its IFRS financial results for the half year ended 30 June 2020.

Management comments

Alexey Voronov, Deputy CEO - Chief Financial Officer of Management Company Metalloinvest, commented:

"In the first half of 2020, the Company's revenue decreased by 14% to USD 3.1 bn. This is mainly related to a significant decline in average prices for all product types caused by the COVID-19 pandemic and a decrease in economic activity in the global market. However, the Company successfully redistributed its product flows in the reporting period and retained a solid EBITDA margin of 36.5%.

We are pleased to note that in the first half of 2020, the Company's Net Debt decreased by 9% to USD 3.4 bn. Thus, the Company maintained a comfortable level of leverage, with Net Debt / EBITDA LTM at 1.6x at the end of the reporting period. A debt repayment schedule with a minor proportion of short-term debt, of around 7%, secures a sustainable financial position of the Company."

FINANCIAL HIGHLIGHTS

• Revenue USD 3,075 mn (-14.2% y-o-y)
• EBITDA USD 1,059 mn (-24.9%)
• EBITDA margin 36.5% vs. 41.6% in H1 2019
• Net Income USD 530 mn (-48.0%)
• Net Debt USD 3,409 mn (-9.2% compared to 31 December 2019)
• Net Debt / EBITDA LTM 1.6x vs. 1.5x as at 31 December 2019
• Capital Expenditure USD 209 mn (-5.4%)

PRODUCTION HIGHLIGHTS

• Iron ore 20.2 mn tonnes (+2.6%)
• Pellets 14.2 mn tonnes (+0.6%)
• HBI/DRI 4.1 mn tonnes (+1.6%)
• Hot metal 1.3 mn tonnes (-7.2%)
• Crude steel 2.5 mn tonnes (+4.6%)

KEY CORPORATE HIGHLIGHTS

Operational developments and capital expenditure

• Launch of CCM #3 at OEMK following the completion of its technical re-equipping
• Modernisation of the beneficiation plant at MGOK to increase the plant's iron ore concentrate production
• Reconstruction of Pellet Plant #3 at MGOK for implementing advanced technology of additional concentrate grinding

 

Financing

• Placement of BO-04 series and BO-10 series RUB-denominated bonds in the amount of RUB 10 bn and RUB 5 bn accordingly
• Signing of an agreement with ING Bank for ECA backed financing in the amount of EUR 11.7 mn
• Opening of a credit line at the International Bank for Economic Co-operation (IBEC) in the amount of up to EUR 40 mn
• Confirmation of the Company's "ruAA" rating with a stable outlook by the Expert RA rating agency

Sustainable development

• Approval of the 2020-2025 Environmental Programme with RUB 21 bn in investments
• Increase of the payroll fund by 5% (or RUB 1.7 bn taking into account deductions for social insurance contributions)
• Approval of social partnership programmes for 2020
• One-time financial aid to support the employees during the COVID-19 pandemic (approximately RUB 600 mn)
• Support for the healthcare system in the regions where the Company operates (in the total amount of over RUB 2.4 bn)

Corporate governance

• New appointments to management positions - Nazim Efendiev (CEO), Alexey Voronov (Deputy CEO - Chief Financial Officer), Andrey Belyshev (Deputy CEO - Organisational Development and Human Resources Director), Yulia Shutkina (Digital Transformation Director), Oleg Krestinin (Deputy CEO - Sales Director), Anton Zakharov (Managing Director of MGOK) 

 

Full press release and financial statements are available at:

https://www.metalloinvest.com/investors/financial-results/

 

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For further information, please contact:

Artem Lavrischev
Director of Finance and Economics Development Department

E: ir@metalloinvest.com

T: +7 (495) 981-55-55, ext. 7243

Anton Troshin

Director of Corporate Communications Department

E: pr@metalloinvest.com

T: +7 (495) 981-55-55, ext. 7629

 

 

 

 

 

 

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 Holding Company USM LLC. Alisher Usmanov is the major beneficiary of Holding Company USM LLC (49%).