Metalloinvest Announces Operational Results for Q4 and FY 2014
01/29/2015 - Metalloinvest, a global iron ore and HBI producer and a Russian steel producer, announced its operational results for the fourth quarter and full year 2014.
Management comments
- In Q4 2014, iron ore production amounted to 9.7 million metric tons, a decrease of 0.5% q-o-q . In 2014, the company increased output by 1.0% y-o-y to 38.7 million metric tons
- The company increased pellet production by 2.6% q-o-q to 5.7 million metric tons in Q4 2014. Annual output reached 22.7 million metric tons, up by 0.4% y-o-y
- In Q4 2014, HBI/DRI production raised by 13.1% q-o-q to 1.3 million metric tons. Annual output amounted to 5.3 million metric tons, down by 1.1% y-o-y
- In Q4 2014, the company increased hot metal production by 6.1% q-o-q to 0.6 million metric tons. Hot metal output in 2014 reached 2.3 million metric tons, a 4.8% y-o-y growth
- The company raised crude steel production by 7.1% q-o-q to 1.1 million metric tons in Q4 2014. Annual crude steel output amounted to 4.5 million metric tons, a 3.7% y-o-y decrease
- In Q4 2014, the share of iron ore product shipments to the domestic market remained at the level of approx. 60%. In 2014, the share of shipments to Russian customers remained unchanged y-o-y at 59%. The largest domestic customers were NLMK, MMK, Severstal and Evraz
- The share of iron ore products shipped to the European market amounted to 24% in Q4 2014, compared with 25% in Q3 2014. The share of shipments to Europe increased to 23% in 2014 compared to 20% in 2013, mainly due to a significant increase in supplies to U.S. Steel Kosice
- In Q4 2014, the share of iron ore products shipped to Asian countries increased to 11% from 5% in the previous quarter mainly as a result of larger spot sales to China. In 2014, the share of iron ore products shipped to Asia slightly decreased versus 2013 (to China – to 5% from 8%; and to other Asian countries – to 6% from 9%) due to the reallocation of shipments to European steelmakers and other markets
- The share of iron ore products shipped to the MENA region amounted to 3% in Q4 2014, compared with 5% in the previous quarter. In 2014, the region's share in total shipments increased to 4% from 3% due to an increase in supply to Erdemir (Turkey)
- In Q4 2014, LGOK increased iron ore concentrate production by 3.8% q-o-q to 5.2 million metric tons. This mainly resulted from a decrease in the duration of maintenance works. Annual output grew 1.2% y-o-y, reaching 20.5 million metric tons due to an increase in productivity
- Iron ore concentrate production at MGOK in Q4 2014 amounted to 4.0 million metric tons (down by 5.8% q-o-q) as a result of a scheduled increase in maintenance works. Annual production increased by 0.7% y-o-y to 16.7 million metric tons, mainly due to higher productivity of crushing and beneficiation plant
- In Q4 2014, pellet production at LGOK increased by 0.4% q-o-q to 2.2 million metric tons. In 2014, LGOK increased pellet production by 1.0% y-o-y to 9.0 million metric tons, mainly as a result of higher productivity due to changes in the pellet production structure (reduced consumption of DR-grade pellets used in HBI production) and the optimization of the DR-grade pellet production schedule
- MGOK increased pellet production by 8.6% q-o-q to 2.6 million metric tons in Q4 2014, mainly due to the completion of major maintenance works at the Pellet Plant in Q3 2014, as well as a decrease in the duration of maintenance works. In 2014, production increased by 0.3% to 9.9 million metric tons
- In Q4 2014, LGOK raised HBI production by 24.0% q-o-q to 0.6 million metric tons mainly due to the completion of scheduled major maintenance works at HBI Plant-1 and most part of major maintenance works at HBI Plant-2 in Q3 2014. In 2014, HBI production amounted to 2.4 million metric tons, a decrease of 6.6% y-o-y, which resulted from scheduled major maintenance works and partial modernization at HBI Plant-2
- In Q4 2014, pellet production at OEMK amounted to 0.9 million metric tons, a decline of 7.7% q-o-q, mainly due to scheduled major maintenance works at the Pellet Plant. In 2014, pellet production amounted to 3.7 million metric tons, down by 0.6% y-o-y, due to a scheduled increase in the duration of major maintenance works
- OEMK increased DRI production by 5.7% q-o-q to 0.7 million metric tons in Q4 2014, mainly due to the completion of major maintenance works at DRI Plants. In 2014, DRI production grew by 4.1% y-o-y to 2.9 million metric tons, mainly as a result of higher productivity at DRI Unit-3 after the finalization of major maintenance works and modernization in 2013
- In Q4 2014, crude steel production at OEMK increased by 4.6% q-o-q to 0.9 million metric tons. In 2014, OEMK raised steel production by 4.9% to 3.4 million metric tons. Record high production volumes in Q4 2014 and in 2014 as a whole are mainly attributable to increased productivity, decreased idle time and reduced duration of major maintenance works
- In Q4 2014, Ural Steel increased hot metal production by 6.1% q-o-q to 0.6 million metric tons. Annual output grew by 4.8% y-o-y, reaching 2.3 million metric tons, mainly due to an increase in blast furnace shop productivity as a result of intensification of its production process
- Ural Steel boosted crude steel production by 15.5% q-o-q to 0.3 million metric tons in Q4 2014. This was mostly driven by the completion of major maintenance works and optimization of the casting process at CCM-2. In 2014, crude steel production amounted to 1.1 million metric tons, a decrease of 22.5% y-o-y, mainly due to the planned closure of open-hearth furnace and rolling shops
