METALLOINVEST Announces Financial Results for First Half of 2013
09/06/2013 - METALLOINVEST announced its results for the first half of the year, saying it was marked by positive changes despite difficult conditions in the industry.
Metalloinvest, a leading global iron ore and HBI producer, announced its IFRS financial results for the six months ended 30 June 2013.
FINANCIAL HIGHLIGHTS
- Revenue US$ 3,807 million (+1.9% h-o-h ) [1]
- EBITDA US$ 1,230 million (+35.0%)
- EBITDA margin 32.3% vs. 24.4% in H2 2012
- Net Income US$ 621 million (+50.7%)
- Net Debt US$ 5,591 million (-6.9% compared to 31 December 2012)
- Net Debt / EBITDA LTM [2] 2.61x vs. 2.35x as at end-2012
- Capital expenditures US$ 235 million (-7.1%)
- Total assets US$ 9,740 million (-5.9% compared to 31 December 2012)
PRODUCTION HIGHLIGHTS
- Iron ore 19.2 million tonnes (-3.5%)
- Pellets 11.1 million tonnes (-0.9%)
- HBI/DRI 2.7 million tonnes (+8.0%)
- Hot metal 1.1 million tonnes (+10.0%)
- Crude steel 2.4 million tonnes (-14.3%)
CORPORATE HIGHLIGHTS
Operational developments
- Construction and assembly works at Pellet Plant #3 at MGOK
- Completion of project documentation stage for HBI-3 at LGOK
- Signing contracts for purchase of new high-performance machinery: Hitachi excavators and BelAZ and Caterpillar trucks
- Launch of the new gas purification unit at OEMK
- Ongoing construction of coke-oven battery #6 construction at Ural Steel
Corporate events
- Signing of three-year contract with Severstal to supply approximately 3 million tonnes of iron ore
- Debut release of the company’s quarterly IFRS financial results
- Upgrade of Metalloinvest’s Moody’s credit rating from ‘Ba3’ to ‘Ba2’ with a Stable outlook
- Revision of Fitch rating outlook to Positive on the Metalloinvest ‘BB-‘ long-term issuer default rating
- Affirmation of Metalloinvest’s S&P ‘BB-‘ long-term rating with a Positive outlook
Finance & Corporate Governance
- Issue of RUB 10 bn 8.9% RUB-denominated unsecured corporate bonds maturing in 2023 with an early redemption option in 2018
- Issue of US$ 1,000 million 5.625% Eurobonds maturing in 2020
- Repayment ahead of schedule of US$ 1,250 million of the syndicated loan (PXF)
Social responsibility and Public Relations
- Signing of Social Partnership Programmes for 2013 with the administrations of Belgorod and Kursk regions and the town of Zheleznogorsk
Pavel Mitrofanov, deputy CEO – chief financial officer of management company Metalloinvest, commented:“The first half of 2013 was marked by positive changes in corporate governance and transparency of the company due to changes in the composition of the Board of Directors and transition to quarterly disclosure of the key financial indicators. Align with these changes the rating agencies rewarded the company with better credit profile assessments despite the difficult situation in the industry.
“Furthermore, in the first half of 2013, the company reduced its total debt by US$ 500 million, which, along with the optimization of the debt portfolio through issuing a 7-year Eurobond, improved the Company’s debt structure.”
