Press Room

Metalloinvest announces operational results for Q4 2019 and FY 2019

30 January 2020

Metalloinvest (the Company), a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel, today announces its operational results for the twelve months and the fourth quarter of 2019.

Management comments

Andrey Varichev, CEO of Management Company Metalloinvest, commented:

In 2019, the Company successfully completed one of the stages of the comprehensive strategic development program aimed to improve product quality. It was implemented fine screening technology at MGOK. Four sections of fine screening technology started to operate at full capacity in the fourth quarter of 2019 that allowed to produce concentrate with a higher iron ore content. Reconstruction of Pellet Plant at MGOK enabled the Company to produce premium-quality pellets.

Thereby, during twelve months of 2019 the Company demonstrated the growth of production and shipments of high value-added products (pellets and HBI/DRI). Its share in the total amount of iron ore product shipments comprised 72%.

In 2019, crude steel production decreased by 3.7% y-o-y mainly due to reconstruction of flexible modular furnaces at Ural Steel and the development of a new steel production technology.

Iron ore products

  • In FY 2019, iron ore production amounted to 40.2 mn tonnes (-0.3% y-o-y ). In Q4 2019, production volumes decreased by 2.2% q-o-q . This was due to a change in both the product mix and the quality characteristics of the mined iron ore. Another factor was the production of concentrate with a higher iron ore content after the four sections of fine screening technology started to operate at full capacity at MGOK , which in turn led to a decrease in the physical volume of production.
  • In FY 2019, pellet production increased by 1.5% y-o-y and amounted to 28.1 mn tonnes, as a result of the completion of major maintenance works at Pellet Plant #2 at LGOK , the reconstruction of Pellet Plant #3 at MGOK, the optimisation of the duration of maintenance works, and a change in the pellet production mix. However, in Q4 2019, pellet production decreased by 4.3% q-o-q, primarily due to scheduled major maintenance works at OEMKs Pellet Plant.
  • In FY 2019, the Company produced 7.9 mn tonnes of HBI/DRI, which represents 0.5% growth y-o-y. Meanwhile, in Q4 2019, production volumes increased by 5.6% q-o-q due to the completion of scheduled major maintenance works at DRI Plant #1 and DRI Plant #2 at OEMK and at HBI-1 Plant and HBI-2 Plant at LGOK in Q3 2019, as well as the increase in production volumes at HBI-3 Plant, the most productive facility.
  • In FY 2019, the total volume of iron ore product shipments to third parties increased by 3.3% y-o-y and amounted to 26.7 mn tonnes. In Q4 2019, shipment volumes grew by 7.2% q-o-q, mainly due to the increase in supplies of pellets and iron ore concentrate to the domestic market.
  • HVA iron ore products (pellets and HBI/DRI) prevail in the total volume of iron ore product shipments and amounted to 72% in FY 2019 and 69% in Q4 2019.
  • The share of iron ore product shipments to the domestic market amounted to 53% in FY 2019 (compared to 65% in FY 2018) and 54% in Q4 2019.
  • The Company increased the volume of export supplies in FY 2019 by 39.7% y-o-y mainly due to the increase in supplies to Asia its share comprised 22% of total shipments in FY 2019 compared to 4% in FY 2018. In Q4 2019, export supplies decreased by 8.1% q-o-q as a result of the reallocation of shipments to the domestic market.

Pig iron and steel products

  • In FY 2019, the output of hot metal decreased by 9.1% y-o-y and amounted to 2.7 mn tonnes due to maintenance works at the blast furnaces. In Q4 2019, hot metal production declined by 7.2% q-o-q.
  • Crude steel production decreased by 3.7% y-o-y to 4.9 mn tonnes in FY 2019 mainly as result of the reconstruction of FMF #1 and FMF #2 at Ural Steel. Meanwhile, in Q4 2019, the production volume increased by 3.6% q-o-q and amounted to 1.2 mn tonnes. This growth was driven by the completion of major maintenance works at CCM #1 and the reconstruction of FMF #1 at Ural Steel in Q3 2019.
  • Pig iron shipments to third parties decreased from 2.2 mn tonnes in FY 2018 to 1.7 mn tonnes in FY 2019, mainly due to the growth of internal consumption of these products. Pig iron shipments in Q4 2019 comprised 0.3 mn tonnes, which represents a decrease of 0.1 mn tonnes q-o-q.
  • The share of HVA steel product shipments amounted to 41% in FY 2019.
  • In FY 2019, pig iron and steel product shipments to the Russian market increased by 0.6% and amounted to 31% (compared to 28% in FY 2018). In Q4 2019, the share of shipments to the Russian market was 29%.

Documents
Download PDF (438.47 Kb) Press release
Download XLSX (49.33 Kb) Operational Results Q4 2019
Artem Lavrischev

Artem Lavrischev

Director of Investor Relations & Corporate Ratings Department
E-mail: ir@metalloinvest.com
Tel.: +7 (495) 981-55-55

For more information, please contact the Investor Relations Department:

 
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