Page 80 - UKRRptNov21

also as a result of the acquisition of Dniprovskyy Steel assets. Its hot-rolled coil production added 8% qoq to 603 kt, while output of hot-rolled plate dropped 11% qoq to 695 kt.
For 9M21, Metinvest’s output of semi-finished products slid 1% y/y to 2.466 mmt while its finished product output jumped 23% y/y to 5.345 mmt.
Total coke production lost 9% qoq to 1.094 mmt in 3Q21, while merchant coke output dropped 15% qoq to 400 kt. Raw material shortages were mentioned in the update as one of the reasons for the qoq drop in total coke production volumes in 3Q21. For 9M21, total coke production decreased 3% y/y to 3.461 mmt, while merchant coke output dropped 8% y/y to 1.391 mmt.
Total 3Q21 iron ore concentrate production lost 3% qoq to 7.814 mmt, whereas output of merchant iron ore products plunged 25% qoq to 3.712 mmt due to a 26% qoq drop in merchant iron ore concentrate production to 2.444 mmt and a 21% decrease in merchant pellet production to 1.268 mmt. The decrease in merchant iron ore product output was likely due to the increase in the intragroup consumption due to the consolidation of Dniprovskyy Steel assets starting from August (these assets were external customers before their acquisition by Metinvest).
Total 9M21 iron ore concentrate production rose 4% y/y to 23.678 mmt, whereas output of merchant iron ore products dropped 6% y/y to 13.468 mmt.
Production of coking coal concentrate at Metinvest plunged 21% qoq to 1,351 kt in 3Q21 due to unfavorable geological conditions experienced by Pokrovske Coal, according to the release. In 9M21, coking coal concentrate output jumped 80% y/y to 4.055 mmt due to the consolidation of Pokrovske coal business from March.
EBITDA at Ukraine’s largest steelmaker Metinvest (METINV) dropped 20.5% m/m to $766mn in August, according to its monthly results published on November 3. The holding’s revenue slid 2.5% m/m to $1,706mn.
EBITDA excluding joint ventures (JVs) decreased 15.9% m/m to $664mn in August.
Metinvest’s operating cash flow before working capital changes dropped 13.8% m/m to $671mn in August, whereas cash flow from operations after working capital changes (but before profit tax and interest) plunged 50.2% m/m to $487mn.
Cash outflow due to changes in accounts receivable was $85mn in August (vs.an inflow of $457mn in July). Cash outflow due to changes in accounts payable plunged 78.8% m/m to $32mn.
The holding’s cash inflow from investment activities was $27mn (vs. an outflow of $314mn in July). Metinvest’s outflow from financing activities amounted to $213mn and its end-of-month cash balance slid 2.7%
80 UKRAINE Country Report November 2021 www.intellinews.com