Metalloinvest Announces H1 Operational, Financial Results
08/26/2014 - Metalloinvest, a Russian iron ore and HBI producer, published its IFRS financial results for the half year ended 30 June 2014.
FINANCIAL HIGHLIGHTS
PRODUCTION HIGHLIGHTS
Operational developments
Financing
Corporate governance and information disclosure
Social responsibility
Pavel Mitrofanov, deputy CEO – chief financial officer of Metalloinvest, commented: “The company’s robust financial results of the first half of 2014 represent the successful efforts, focused on financial stability and market positions in the high value-added segments. Despite the significant decline in iron ore prices, we have managed to maintain our EBITDA margin above 30%. Additionally, our Steel Segment made a positive contribution to the company’s EBITDA.
“We are continuing to improve the company’s corporate governance practices by establishing the Management Board and Remuneration Committee of the Board of Directors. We see rating upgrades by S&P and Fitch as recognition of the ongoing positive changes at Metalloinvest,” he said.
- Revenue US$ 3,533 million (-7.2% y-o-y1 )
- EBITDA US$ 1,087 million (-11.6%)
- EBITDA margin 30.8% vs. 32.3% in H1 2013
- Net Income US$ 549 million (-11.6%)
- Net Debt US$ 4,855 million (-10.8% compared to 31 December 2013)
- Net Debt / EBITDA LTM2 2.32x vs. 2.43x as of 31 December 2013
- Capital Expenditure US$ 287 million (+22.1%)
- Total Assets US$ 11,088 million (+6.1% compared to 31 December 2013)
PRODUCTION HIGHLIGHTS
- Iron ore3 19.3 million metric tons (+0.7%)
- Pellets 11.5 million metric tons (+3.2%)
- HBI/DRI 2.8 million metric tons (+2.9%)
- Hot metal 1.1 million metric tons (+0.8%)
- Crude steel 2.3 million metric tons (-4.5%)
Operational developments
- Assembly works at Pellet Plant #3 at MGOK
- Ongoing construction of HBI-3 Plant at LGOK
- Installation of equipment for an oxygen station at OEMK
- Purchase of new open-pit machinery to increase the Company’s production efficiency
- New long-term contracts with KOKS Group and Kosaya Gora Iron Works
- Stronger cooperation with existing domestic customers (Evraz, Severstal, MMK)
Financing
- Net Debt reduction of US$ 588 million and decrease in the Company’s leverage to 2.32x Net Debt/EBITDA LTM
- Refinancing of pre-export finance facility of US$ 1,150 million
- Rating upgrade to ‘BB’ from ‘BB-’ by S&P and Fitch rating agencies
Corporate governance and information disclosure
- Creation of Remuneration Committee of the Board of Directors
- Formation of a new executive body – the Management Board
Social responsibility
- Signing of Social Partnership Programmes for 2014 with the administrations of Kursk and Belgorod regions and Zheleznogorsk
Pavel Mitrofanov, deputy CEO – chief financial officer of Metalloinvest, commented: “The company’s robust financial results of the first half of 2014 represent the successful efforts, focused on financial stability and market positions in the high value-added segments. Despite the significant decline in iron ore prices, we have managed to maintain our EBITDA margin above 30%. Additionally, our Steel Segment made a positive contribution to the company’s EBITDA.
“We are continuing to improve the company’s corporate governance practices by establishing the Management Board and Remuneration Committee of the Board of Directors. We see rating upgrades by S&P and Fitch as recognition of the ongoing positive changes at Metalloinvest,” he said.
