Page 65 - UKRRptMay20
P. 65
April 27. The holding’s revenue gained 4.8% m/m to $860mn. EBITDA excluding that of joint ventures (JVs) jumped 80.3% m/m to $119mn in February. M etinvest’s operating cash flow before working capital changes jumped 2.2x m/m to $123mn in February, whereas cash flow from operations after working capital changes (but before profit tax and interest) plunged to negative $6mn in February from positive $107mn in January. Cash outflow due to increase in accounts payable skyrocketed to $191mn in February, compared with an inflow of $40mn in January. The holding’s cash outflow from investment activities inched up 1.4% m/m to $74mn. Metinvest’s inflow from financing activities amounted to $71mn and its end-of-month cash balance decreased 13.1% m/m to $253mn. Its gross debt rose $65mn m/m to $3,092mn, while net debt increased $103mn m/m to $2,839mn. Metinvest’s metallurgical segment EBITDA (including JVs) skyrocketed 3.8x m/m to $46mn in February, while its mining segment EBITDA jumped 36.0% m/m to $102mn. Excluding JVs, Metinvest’s metallurgical segment EBITDA climbed 2.8x m/m to $56mn in February, while its mining segment EBITDA advanced 36.7% m/m to $82mn. The ratio of Metinvest’s net debt to its last-12-month (LTM) EBITDA rose to 2.83x at the end of February, up from 2.75x a month ago. In 2M20, Metinvest’s revenue dropped 8.2% y/y to $1,681mn, while its EBITDA including JVs dropped 19.5% to $202mn and EBITDA excluding JVs lost 18.9% y/y to $185mn. Iron and steel product prices rose m/m in February, gaining 2% for pig iron, 7% for slabs, and 5% for flat products. Iron ore concentrate price rose 9% m/m, while the pellet price slid 3% m/m.
Metinvest steel output drops 3% m/m in March. Steel production at Ukraine’s largest producer Metinvest (METINV) was 23.2 kt per day (or 719 kt per month) in March, a 2.5% m/m loss, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. Ilyich Steel reported an 8.2% m/m increase in steel production to 12.1 kt per day, while Azovstal’s output dropped 12.1% m/m to 11.1 kt per day in March. The holding's hot iron output gained 6.2% m/m to 23.8 kt per day. In 1Q20, Metinvest's steel output was 2.17 mmt (23.8 kt per day), or 11.9% more y/y.
Ukraine’s largest steelmaker Metinvest has secured a €9.8mn credit facility backed by Austria’s export credit agency (ECA), Oesterreichische Kontrollbank Aktiengesellschaft (OeKB), the company reported in an April 9 release. The facility will be used by Ilyich Steel, Metinvest’s Ukrainian steelmaker, to finance the construction of a hydraulic down coiler for the plant’s hot strip mill 1700, the holding said. It will mature in April 2029, and will bear an interest rate of 6M EURIBOR with an unspecified margin, Metinvest said, adding that the sole lender will be Raiffeisen Bank International. The total investment into the down coiler project will be $18mn, the holding reported. The project, equipment for, which will be procured from Primetals Technologies Austria, will enhance the product mix at Ilyich Steel by increasing the maximum weight of hot-rolled coils to 32 tons from the current 27 tons, according to the release.
Ukraine FOB prices for the types of steel products exported by Metinvest, Ukraine’s largest producer, stabilized during April 10-17, according to Metal Expert, an industry consultancy. Billet prices rose 4% w/w to $355/t on April 17, 1% above their 2019 low of $350/t on October 4. Slab prices inched up 2% w/w to $325/t on April 17, 3% below their 2019 low of $335/t on November 1. HRC prices were unchanged w/w at $363/t on April 17, 1% below their 2019 low of $365/t on October 25. The prices provided by Metal Expert are sophisticated estimates but they are not necessarily the same
65 UKRAINE Country Report May 2020 www.intellinews.com
