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as the prices realized by Metinvest for its specific products.
● Interpipe
EBITDA at Ukraine’s largest pipe and railway wheel producer Interpipe surged 64% y/y to $259mn in 2019, according to the company’s financial statement and accompanying presentation published on April 23. Net profit amounted to $829mn in 2019, compared with a $48mn loss for 2018. Interpipe’s revenue rose 4% y/y to $1,122mn in 2019, driven by a 49% jump in railway product segment revenue to $425mn, which was in large part offset by a 13% drop in pipe segment revenue to $658mn. EBITDA of Interpipe’s railway product segment skyrocketed 5.8x y/y to $190mn in 2019. EBITDA of its pipe segment dropped 32% y/y to $35mn, while that of its steel segment plunged 56% y/y to $32mn
Pipe sales volume at Ukraine’s largest producer Interpipe was 45.5 kt in March, a 23.0% m/m rise, according to the company’s March operational report released on April 16. Railway product sales inched up 1.0% m/m to 18.5 kt, while external billet sales skyrocketed 6.9x m/m to 5.5 kt. Total sales volume jumped 23.8% m/m to 69.4 kt. The m/m jump in pipe sales volume in March was driven by line pipes (+26% m/m to 26.2 kt), welded pipes (+45% m/m to 6.4 kt) and OCTG pipes (+7% to 11.2 kt). The m/m increase in railway product sales was driven by sales of wheelsets, which jumped 61.2% m/m to 2.0 kt, which was partially offset by a decrease in sales of wheels (a 3.4% drop to 16.2 kt). During 1Q20, Interpipe’s pipe sales dropped 28.4% y/y to 112.2 kt, driven by a 52.6% plunge for welded pipes to 15.4 kt, a 33.1% drop for OCTG pipes to 30.1 kt, and a 12.2% drop for line pipes to 62.6 kt. Railway product sales in 1Q20 jumped 27.1% y/y to 58.2 kt, driven mostly by a 24.1% rise for wheels to 51.7 kt and a 77.8% jump for wheelsets to 5.4 kt. Interpipe's share of pipe sales in Ukraine in 1Q20 dropped 7pp in comparison with 2019 to 18%, and the share of sales in the Americas plunged 13pp to 11%. At the same time, Europe's share in pipe sales gained 8pp to 32%, and the share of MENA rose 9pp to 24%. The share of CIS countries in 1Q20 rose 2pp to 12%. The share of railway product sales in Ukraine in 1Q20 dropped 5pp compared with 2019 to 17%, while the share of sales to Europe gained 4pp to 30% and the share of sales to CIS countries remained unchanged at 45%. Regarding production volumes, which might be indicative of sales volumes in future months, Interpipe’s production of pipes gained 13.4% m/m to 43.4 kt in March, while railway product output inched up 4.3% m/m to 19.0 kt.
● Ferrexport
Ferrexpo daily pellet output plunges 21% m/m in March. Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN) produced 801 kt of pellets in March, which amounts to 25.8 kt per day, a 20.8% m/m fall, according to Concorde Capital's analysis of the company’s 1Q20 production report released on April 7. In 1Q20, Ferrexpo’s pellet output amounted to 2.73mmt (29.9 kt per day), 7.4% more y/y. Ferrexpo noted in its report that 1Q20 production was not impacted by the coronavirus, adding that 1Q20 sales are expected at around 2.8mmt, up from 2.6mmt a year ago.
The board of Ukraine’s largest iron ore pellet exporter Ferrexpo has declared a $0.033 per share final special dividend and a $0.033 per share final ordinary dividend, according to an April 21 company release. The final special dividend will be paid on May 17, and the record date for this dividend
66 UKRAINE Country Report May 2020 www.intellinews.com
