Press Room

Metalloinvest announces interim financial results for Q3 and 9m 2019

28 November 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 interim financial statement (unaudited) for the third quarter and nine months ended 30 September 2019.

Management comments

Alexey Voronov, Finance Director of Management Company Metalloinvest, commented:

In the third quarter of 2019 steel prices continued to demonstrate weak dynamics, which was partially offset by the outperformance of average iron ore prices. As a result, the Companys consolidated EBITDA for nine months of 2019 amounted to USD 2.1 bn, largely due to a 25% increase in the mining segment EBITDA. Due to the deep processing of iron ore products and competitive cash costs, business profitability remains strong. The Companys leverage remains at a comfortable level, with a Net Debt / EBITDA LTM of 1.29x at the end of the reporting period.

FINANCIAL HIGHLIGHTS

  • Revenue USD 5,328 mn (-0.3% y-o-y )
  • EBITDA2 USD 2,115 mn (-3.1%)
  • EBITDA margin 39.7% vs. 40.9% in 9M 2018
  • Net Income USD 1,484 mn (+19.2%)
  • Net Debt USD 3,687 mn (+9.8% compared to 31 December 2018)
  • Net Debt / EBITDA LTM3 1.29x vs. 1.14x as of 31 December 2018
  • Capital Expenditure USD 352 mn (+10.0%)

PRODUCTION HIGHLIGHTS

  • Iron ore4 30.1 mn tonnes (+0.2%)
  • Pellets 21.2 mn tonnes (+2.2%)
  • HBI/DRI5 5.9 mn tonnes (+1.3%)
  • Hot metal 2.1 mn tonnes (-7.0%)
  • Crude steel 3.6 mn tonnes (-2.7%)

KEY CORPORATE HIGHLIGHTS IN Q3 2019

Operational developments and capital expenditure

  • Coordination meeting with ChelPipe Group
  • Trialling an experimental batch of briquettes from YUGPK for smelting pig iron at Ural Steel
  • Purchase of new equipment for Lebedinsky GOK (LGOK) and Mikhailovsky GOK (MGOK)
  • Start of construction of grinding ball mill at OEMK
  • Modernisation of thermal power plant at Ural Steel
  • Launch of the first technological phase of Derrick Fine Screening Technology at MGOK

Financing

  • Signing of a framework agreement with 12 banks for executing deals under ECA backed financing
  • Opening of a new EUR 300 mn credit line for pre-export financing (the PXF-2019)
  • Announcement of an early repayment of Eurobonds-2020 in the principal amount of USD 270.6 mn

Social responsibility and corporate governance

  • Winning in the XVI Metals and Mining Enterprises with Highly Effective CSR competition for 2018
  • Approval of Metalloinvests Human Rights Policy and Code of Corporate Ethics
  • Joining the United Nations Global Compact international sustainability initiative
Documents
Download PDF (260.18 Kb) Financial Results Q3 2019 Report
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