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Evraz Increases 2Q 2011 EBITDA Guidance
08/05/2011 - Evraz Group is increasing its EBITDA guidance for 2Q 2011 to US$875-950 million from a previously announced guidance range of US$750-825 million.
Evraz Group is increasing its EBITDA guidance for 2Q 2011 to US$875-950 million from a previously announced guidance range of US$750-825 million.
The increase in guidance reflects higher-than-expected steel prices, a later-than-expected increase in the cost of iron ore and scrap, and the postponement of certain repairs until 3Q 2011.
According to the management accounts, Evraz’s total debt as of June 30, 2011, was approximately US$7.4 billion, and cash and cash equivalents amounted to approximately US$1.1 billion. Consequently, net debt amounted to about US$6.3 billion.
As a result, the net debt/LTM EBITDA ratio as of June 30 is expected to be in the range of 2.18-2.25x (2H 2010 EBITDA was US$1,196 million), which is below the threshold imposed by debt covenants, the company notes, and gives it greater flexibility in the execution of its strategic plans.
Evraz is also considering listing alternatives to its existing GDR program. To support this process, 1H 2011 financial results are being audited and are expected to be published on or around October 12, 2011.
The increase in guidance reflects higher-than-expected steel prices, a later-than-expected increase in the cost of iron ore and scrap, and the postponement of certain repairs until 3Q 2011.
According to the management accounts, Evraz’s total debt as of June 30, 2011, was approximately US$7.4 billion, and cash and cash equivalents amounted to approximately US$1.1 billion. Consequently, net debt amounted to about US$6.3 billion.
As a result, the net debt/LTM EBITDA ratio as of June 30 is expected to be in the range of 2.18-2.25x (2H 2010 EBITDA was US$1,196 million), which is below the threshold imposed by debt covenants, the company notes, and gives it greater flexibility in the execution of its strategic plans.
Evraz is also considering listing alternatives to its existing GDR program. To support this process, 1H 2011 financial results are being audited and are expected to be published on or around October 12, 2011.
Evraz Group S.A. is a large vertically integrated steel, mining, and vanadium business with operations in the Russian Federation, Ukraine, Europe, U.S., Canada, and South Africa. It employs approximately 110,000 people and is ranked the 15th largest steel producer in the world based on crude steel production of 16.3 million tonnes in 2010.
