UNITED COAL COMPANY WHO WE ARE WHAT WE DO RESPONSIBILITY CAREERS NEWS News and press-releases Feedback TRADING UPDATE FOR THE FIRST QUARTER OF 2017 30 June 2017 Metinvest B.V., the parent company of a vertically integrated group of steel and mining companies (jointly referred to as “Metinvest” or “the Group”), today published a trading update for the first quarter ended 31 March 2017. The information in this press release has been prepared based on preliminary financial results. Intragroup transactions have been eliminated in consolidation. This announcement does not contain sufficient information to constitute a full set of financial statements. The following preliminary results may differ from financial statements prepared in accordance with International Financial Reporting Standards (IFRS). The numbers in this press release have not been audited or reviewed. Metinvest B.V. publishes consolidated financial statements prepared in accordance with IFRS for the six months ending 30 June and for the year ending 31 December. Due to rounding, numbers presented throughout this release may not add up precisely to the totals provided and percentages may not precisely reflect absolute figures. FINANCIAL HIGHLIGHTS (US$ mn) 1Q 2017 1Q 2016 Change Revenues 1,853 1,287 44% Adjusted EBITDA1 402 118 >100% margin 22% 9% 13 pp CAPEX2 103 54 91% (US$ mn) 31 Mar 2017 31 Dec 2016 Change Total debt3 2,951 2,969 -1% Cash and cash equivalents4 215 226 -5% Net debt5 2,736 2,743 0% 1. Adjusted EBITDA is calculated as earnings before income tax, finance income and costs, depreciation and amortisation, impairment and devaluation of property, plant and equipment, foreign-exchange gains and losses (starting from 1 January 2015), the share of results of associates and other expenses that the management considers non-core, plus the share of EBITDA of joint ventures. We will refer to adjusted EBITDA as EBITDA throughout this release. On 15 March 2017, Metinvest lost control over all tangible assets owned by enterprises located in the temporarily non-controlled territory of Ukraine, including Yenakiieve Steel, Krasnodon Coal and Khartsyzk Pipe. Subsequently, the Group decided to make a provision for impairment of all assets of these enterprises, of which US$87 mn for inventories is accounted for in the EBITDA for 1Q 2017. 2. CAPEX is calculated on an accrual basis (recognition). 3. Total debt is calculated as the sum of bank loans, bonds, trade finance, seller notes and subordinated shareholder loans. 4. Cash and cash equivalents do not include blocked cash for cash collateral under issued letters of credit and irrevocable bank guarantees and include cash blocked for foreign-currency purchases. 5. Net debt is calculated as total debt less cash and cash equivalents. REVENUES In 1Q 2017, Metinvest’s consolidated revenues increased by 44% y-o-y to US$1,853 mn. This was primarily due to a recovery in global prices of steel, iron ore and coal products, after they hit their lowest over the last several years in 1Q 2016. Revenues in Ukraine amounted to US$462 mn in 1Q 2017, up 65% y-o-y, primarily due to higher selling prices, as well as greater sales volumes of finished steel products. This was partly offset by lower sales volumes of coke and iron ore products. The share of Ukraine in consolidated revenues increased by 3 pp y-o-y to 25%. International sales accounted for 75% of consolidated revenues in 1Q 2017. The share of Europe reached 37%, up 2 pp y-o-y, following a 53% increase in sales to the region amid higher sales volumes of slabs (+48 kt) and iron ore products (+653 kt), as well as a rise in selling prices of all products. Although sales to the Middle East and North Africa (MENA) rose by 35% y-o-y amid greater sales volumes of long products and higher selling prices, the proportion of that region in consolidated revenues decreased by 2 pp y-o-y to 16% due to comparatively higher growth in sales to other markets. The share of sales to Southeast Asia decreased by 5 pp y-o-y to 8%, as sales to that region declined by 8% y-o-y, mainly due to lower shipments of iron ore products (-2,241 kt). The share of North America remained flat y-o-y at 4%, while sales to that region increased by 24% y-o-y, primarily due to greater sales volumes of finished steel products, as well as higher selling prices of pig iron and long products. The share of the CIS (ex Ukraine) climbed by 2 pp y-o-y to 9%, driven by a 76% y-o-y rise in sales to the region amid higher selling prices and sales volumes of flat products. Revenues by market 1Q 2017 1Q 2016 Change, y-o-y US$ mn % of revenues US$ mn % of revenues US$ mn % pp of revenues Total revenues 1,853 100% 1,286 100% 567 44% - Ukraine 462 25% 279 22% 183 65% 3 Europe 688 37% 449 35% 240 53% 2 MENA 304 16% 226 18% 78 35% -2 CIS (ex Ukraine) 161 9% 92 7% 69 76% 2 Southeast Asia 151 8% 164 13% -13 -8% -5 North America 71 4% 57 4% 14 24% - Other regions 16 1% 20 2% -4 -21% -1 Metallurgical segment The Metallurgical segment generates revenues from sales of pig iron, steel and coke products and services. In 1Q 2017, its top line rose by 46% y-o-y to US$1,473 mn, driven by higher selling prices of steel and coke products, as well as greater demand for slabs. As such, sales of flat products rose by US$321 mn, slabs by US$50 mn, long products by US$49 mn, coke by US$28 mn and other products and services by US$27 mn. This was partly offset by lower sales of square billets of US$17 mn. The share of finished products in the steel sales mix rose to 81% in 1Q 2017, up 5 pp y-o-y, due to lower sales of pig iron and square billets. In 1Q 2017, the segment accounted for 79% of external sales, flat y-o-y. Sales by market 1Q 2017 1Q 2016 Change, y-o-y Change, y-o-y % US$ mn % of revenues kt US$ mn % of revenues kt US$ mn kt US$ mn kt Total sales 1,473 100% 2,807 1,012 100% 3,061 462 -253 46% -8% Ukraine 314 21% 518 200 20% 535 114 -17 57% -3% Europe 566 38% 1,078 423 42% 1,211 142 -133 34% -11% MENA 304 21% 641 225 22% 770 79 -129 35% -17% CIS (ex Ukraine) 161 11% 245 92 9% 250 69 -5 76% -2% Southeast Asia 49 3% 108 19 2% 74 29 34 >100% 46% North America 63 4% 178 32 3% 162 31 16 96% 10% Other regions 16 1% 40 20 2% 58 -4 -18 -21% -31% Sales by product 1Q 2017 1Q 2016 Change, y-o-y Change, y-o-y % US$ mn kt US$ mn kt US$ mn kt US$ mn due to price due to volume Semi-finished products 189 499 152 669 37 -170 24% 50% -25% Pig iron 68 210 65 338 3 -129 5% 43% -38% incl. Zaporizhstal 1 4 10 53 -9 -50 -87% 6% -93% Slabs 94 222 44 171 50 51 >100% 86% 30% Square billets 27 68 44 159 -17 -92 -38% 20% -58% Finished products 1,110 2,098 740 2,121 370 -23 50% 51% -1% Flat products 914 1,700 593 1,702 321 -3 54% 54% 0% incl. Zaporizhstal 313 619 216 726 97 -107 45% 60% -15% Long products 195 398 147 418 49 -20 33% 38% -5% Coke 64 210 36 271 28 -61 78% 101% -22% Other products and services 111 - 84 - 27 - 32% - - Total sales 1,473 2,807 1,012 3,061 462 -253 46% 54% -8% Pig iron In 1Q 2017, sales of pig iron increased by 5% y-o-y to US$68 mn due to higher selling prices, while sales volumes decreased by 38% y-o-y (or 129 kt) to 210 kt, driven by lower overall production (81 kt) and re-sales of Zaporizhstal’s pig iron (50 kt), negligibly offset by destocking. Given the lower available volumes and weaker market demand, sales to MENA, Europe and Southeast Asia decreased by 80 kt, 49 kt and 24 kt, respectively. Sales volumes to North America and Ukraine remained largely unchanged, while those to other regions increased by 25 kt. Slabs In 1Q 2017, sales of slabs doubled y-o-y to US$94 mn, driven by a surge in the average selling price (+86 pp) and a 30% rise in sales volumes. Volumes increased by 51 kt y-o-y to 222 kt amid greater demand and overall production. As such, sales to Europe, Southeast Asia and Ukraine rose by 48 kt, 16 kt and 5 kt, respectively. At the same time, volumes to MENA decreased by 18 kt, mainly due to lower sales to Turkey. Square billets In 1Q 2017, sales of square billets decreased by 38% y-o-y to US$27 mn, driven by a drop in sales volumes (-58 pp), which was partly compensated by a higher average selling price (+20 pp). Volumes declined following the shutdown of Yenakiieve Steel in February 2017, given the rail blockade in the zone between the territory controlled by Ukraine and the non-controlled area, and the subsequent loss of control over the enterprise from 15 March 2017. This resulted in a decline in sales to all markets. Available volumes were distributed to MENA to fulfil orders of key clients. Flat products In 1Q 2017, sales of flat products increased by 54% y-o-y to US$914 mn, due to a hike in the average selling price. Total volumes remained flat y-o-y at 1,700 kt, while re-sales of Zaporizhstal’s flat products dropped by 107 kt y-o-y to 619 kt, reducing their share in total sales volumes by 7 pp y-o-y to 36% in 1Q 2017. Sales volumes were redistributed to key regions depending on where the margins were greatest. Long products In 1Q 2017, sales of long products rose by 33% y-o-y to US$195 mn. This was caused by a higher average selling price (+38 pp), partly offset by lower sales volumes (-5 pp) amid lower production and the loss of control over Yenakiieve Steel. Meanwhile, volumes were allocated between markets to maximise margin. Coke In 1Q 2017, sales of coke doubled y-o-y to US$64 mn, reflecting a similar move in the average selling price. This was partly offset by lower sales volumes, which contracted by 61 kt y-o-y to 210 kt, driven by lower sales in Ukraine. Mining segment The Mining segment generates revenues from sales of iron ore, coal and other products and services. In 1Q 2017, its top line increased by 38% y-o-y to US$380 mn, driven mainly by higher iron ore and coal selling prices, which followed global benchmarks. This was partly offset by a fall in sales volumes, caused by lower overall production of iron ore and coal products, as well as greater intragroup consumption. As a result, external sales of pellets rose by US$66 mn, iron ore concentrate by US$18 mn and other products and services by US$30 mn, while those of coking coal concentrate dropped by US$9 mn. In 1Q 2017, the segment accounted for 21% of external sales, flat y-o-y. Sales by market 1Q 2017 1Q 2016 Change, y-o-y Change, y-o-y % US$ mn % of revenues kt US$ mn % of revenues kt US$ mn kt US$ mn kt Total sales 380 100% 3,574 275 100% 6,119 105 -2,544 38% -42% Ukraine 147 39% 1,302 79 29% 2,051 68 -749 86% -37% Europe 123 32% 1,149 25 9% 496 97 653 >100% >100% MENA - - - 1 0% 14 -1 -14 - - CIS (ex Ukraine) - - - - - - - - - - Southeast Asia 102 27% 998 144 53% 3,239 -42 -2,241 -29% -69% North America 8 2% 125 25 9% 319 -17 -194 -69% -61% Other regions - - - - - - - - - - Mining segment Sales by product 1Q 2017 1Q 2016 Change, y-o-y Change, y-o-y % US$ mn kt US$ mn kt US$ mn kt US$ mn due to price due to volume Iron ore products 312 3,343 228 5,702 84 -2,359 37% 78% -41% Merchant iron ore concentrate 173 2,173 155 4,363 18 -2,190 12% 62% -50% Pellets 139 1,170 73 1,339 66 -169 91% 104% -13% Coking coal concentrate 27 231 36 417 -9 -185 -26% 19% -45% Other products and services 41 - 11 - 30 - >100% - - Total sales 380 3,574 275 6,119 106 -2,544 38% 80% -42% Iron ore concentrate In 1Q 2017, sales of merchant iron ore concentrate increased by 12% y-o-y to US$173 mn, mainly due to a surge in the average selling price. The latter followed the benchmark [1], which rose by 76% y-o-y to an average of US$86/t in 1Q 2017, up from US$49/t a year earlier. At the same time, total sales volumes dropped by 50% y-o-y (or 2,190 kt) to 2,173 kt, driven by a y-o-y production decline and an increase in inventories in 1Q 2017 compared with destocking in 1Q 2016. Given the premiums in Europe, one of Metinvest’s key markets for iron ore, sales to that region increased by 321 kt. There was a decline in sales volumes in Ukraine (-362 kt), amid weaker demand there. The remaining available volumes were sold to Southeast Asia, although volumes to that region were down 2,148 kt y-o-y. Pellets In 1Q 2017, sales of pellets almost doubled y-o-y to US$139 mn, following a hike in the average selling price. Meanwhile, sales volumes contracted by 13% y-o-y (or 169 kt) to 1,170 kt amid lower production. Sales to Europe rose by 333 kt, driven by stronger demand and a favourable market environment. Sales in Ukraine decreased by 395 kt due to lower sales to local customers. The balance was sold to Southeast Asia, although volumes to that region were down y-o-y. Coking coal concentrate In 1Q 2017, sales of coking coal decreased by 26% y-o-y to US$27 mn amid a 45% y-o-y drop in volumes. Sales declined by 185 kt y-o-y to 231 kt in 1Q 2017, driven by lower production and higher internal consumption. This resulted in lower sales in North America. EBITDA In 1Q 2017, Metinvest’s consolidated EBITDA soared by US$284 mn y-o-y to US$402 mn, mainly amid a surge of US$363 mn in the Mining segment’s contribution. In addition, the Metallurgical segment’s EBITDA increased by US$31 mn. Corporate overheads and eliminations rose by US$110 mn, mainly due to higher eliminations. EBITDA by segment 1Q 2017 1Q 2016 Change, y-o-y US$ mn % of segment revenues US$ mn % of segment revenues US$ mn pp of segment revenues Metallurgical segment 83 6% 52 5% 31 1 - incl. JV 44 18 26 Mining segment 436 44% 73 16% 363 28 - incl. JV 74 11 63 Corporate o/hs and eliminations -117 -7 -110 Total EBITDA 402 22% 118 9% 284 13 The increase in consolidated EBITDA was primarily attributable to the following factors: sales price growth (US$667 mn); greater contributions from the JVs, namely Southern GOK (US$63 mn) and Zaporizhstal (US$26 mn); an effect from hryvnia devaluation of US$33 mn, as the USD/UAH exchange rate averaged 27.24 in 1Q 2017, compared with 25.80 in 1Q 2016. These factors were partly offset by: higher cost of raw materials (US$240 mn), primarily due to increased market prices of coal, coke, scrap and iron ore materials, as well as greater consumption of purchased scrap, ferroalloys and third-party coke; lower sales volumes (US$100 mn); impairment of inventories of assets seized in March 2017 (US$87 mn); greater logistics costs (US$38 mn), mainly due to additional coal purchases, rising freight tariffs and higher transportation costs, directly attributable to acquisitions of materials used in the production process; more spending on energy (US$29 mn), due to higher natural gas prices and electricity tariffs, as well as greater consumption of fuel and natural gas; increased other costs (US$11 mn), mainly due to higher purchase prices of coal and Zaporizhstal’s steel goods for resale. In 1Q 2017, the Group’s consolidated EBITDA margin increased by 13 pp y-o-y to 22%. The EBITDA margin rose by 28 pp y-o-y to 44% in the Mining segment and by 1 pp y-o-y to 6% in the Metallurgical segment. Debt management During 1Q 2017, Metinvest successfully concluded the restructuring of 94% of its debt portfolio, totalling US$2.8 bn and including US$1.2 bn in bonds, US$1.1 bn in pre-export finance facilities, US$0.4 bn in shareholder loans[2] and US$0.1 bn in seller notes. At the end of 1Q 2017, total debt stood at US$2,951 mn, net debt at US$2,736 mn and the cash balance at US$215 mn. Capital expenditure In 1Q 2017, Metinvest’s capital expenditure almost doubled y-o-y to US$103 mn[3], due to a need to compensate for underinvestment in CAPEX amid liquidity constraints in previous years. In 1Q 2017, the split between maintenance and expansion projects was 89% to 11% (58% to 42% in 1Q 2016). The Mining segment accounted for 71% of capital expenditure (46% in 1Q 2016) and the Metallurgical segment for 28% (52% in 1Q 2016). Metallurgical segment Major investment projects at Ilyich Steel include the construction of continuous casting machine no. 4 and the ongoing reconstruction of the sinter plant. At Azovstal, construction of the PCI unit at blast furnace no. 2 continues and its launch is expected in September 2017. Mining segment Several projects are ongoing in the Mining segment. These include the construction of deep-quarry crusher and conveyor systems at Northern GOK (the second facility for rock transportation at the Pervomaisky quarry) and Ingulets GOK (Vostochny conveyor line only), as well as the replacement of gas cleaning units on the Lurgi 552-B pelletising machine at Northern GOK. [1] 62% Fe iron ore fines CFR China [2] Shareholder loans have been subordinated to liabilities under the bonds and the pre-export finance facility as part of the debt restructuring process [3] Includes US$1 mn of corporate overheads Справка Все новости December 2021 MO TU WE TH FR SA SU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 НОВОСТИ 1 August 2017 Metinvest announces 2Q and 1H 2017 operational results 30 June 2017 Trading update for the first quarter of 2017 30 May 2017 Metinvest announces financial results for 2016 МЕТИНВЕСТ КОДЕКС ЭТИКИ 2013 Home / News / News and press-releases Контакты 2112 North Roan Street, Suits 500 & 610, Johnson City TN 37601 © 2011-2021 UNITED COAL COMPANY RSS / КАРТА САЙТА