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(excluding JVs), dropped to 2.82x at the end of June, down from 3.04x a month ago, according to Concorde Capital calculations.​ ​In 1H20, Metinvest’s revenue dropped 15% y/y to $4,968mn, while its EBITDA including JVs retreated 20% y/y to $715mn and EBITDA excluding JVs lost 19% y/y to $615mn.​ ​Iron and steel product prices mostly retreated in June, losing 13% for slabs, 8% for flat products and 3% for long products, but gaining 3% for pig iron and remaining flat for billets. Its iron ore concentrate price inched up 3% m/m in June, while the pellet price jumped 10% m/m.
Ukraine FOB prices for the types of iron and steel products exported by
Metinvest​, Ukraine’s largest producer, increased during August 28 – September 4, according to Metal Expert, an industry consultancy. Pig iron prices (Metal Expert’s FOB Black Sea assessment for a group of countries that includes Ukraine) inched up 1% w/w to $350/t on September 4, 23% above their 2019 low of $285/t on November 1 and 5% above their 1Q20 high of $333/t on March 20. Billet prices rose 2% w/w to $410/t on September 4 after rising 1% during August 21-28, 17% above their 2019 low of $350/t on October 4 and in line with their 1Q20 high of $410/t on January 10. Slab prices added 2% w/w to $440/t on September 4, 31% above their 2019 low of $335/t on November 1 and 5% above their 1Q20 high of $420/t on January 17. HRC prices jumped 5% w/w to $503/t on September 4, 38% above their 2019 low of $365/t on October 25 and 5% above their 1Q20 high of $478/t on February 21. Growing demand in Turkey, MENA and Europe drove the HRC prices higher, Metal Expert noted.
● Interpipe
EBITDA at Ukraine’s largest pipe and railway wheel producer​ ​Interpipe rose 19% y/y to $149.0mn in 1H20​, according to the company’s financial statement and accompanying presentation published on September 22. Net profit amounted to $115.5mn in 1H20, compared with a $25.4mn loss for 1H19.​ ​Interpipe’s revenue dropped 16% y/y to $468.3mn in 1H20, driven by a 36% drop in its pipe segment revenue to $231.3mn. Revenue from its railway product segment jumped 23% y/y to $216.0mn.​ ​EBITDA (before reallocation from its steel segment) of Interpipe’s railway product segment jumped 84% y/y to $110.9mn in 1H20. EBITDA of its pipe segment was negative $2.2mn in 1H20, compared with positive $44.5mn in 1H19. EBITDA of Interpipe’s steel segment surged 98% y/y to $39.6mn in 1H20.​ ​For 2Q20, Interpipe’s railway product segment EBITDA plunged 41% qoq to $41.3mn, driven by a 20% drop in sales volumes and a 13% drop in prices. Its pipe segment EBITDA rebounded to positive $2.5mn in 2Q20 from negative $4.7mn in 1Q20, despite a 5% qoq drop in prices for both seamless and welded pipes.​ ​The company’s net operating cash flow dropped 24% y/y $69.3mn in 1H20, while its CapEx decreased 23% y/y to $18.8mn in 1H20. Free cash flow was $51.6mn in 1H20, down24%y/y.​A​ tend-June,Interpipe’sgrossdebtamountedto$215mn (gross debt / L12M EBITDA 0.76x) and its net debt amounted to $28mn (net debt/EBITDA 0.1x). In August, Interpipe redeemed $97mn of its notes, bringing their amount outstanding to $113.7mn on August 31. Interpipe had $187mn in cash at the end of June, a 27% drop YTD.​ ​During a September 22 conference call with investors, Interpipe management disclosed that the company’s cash on the day of the call amounted to $85mn. The company recognizes that the relatively small amount outstanding of its notes creates liquidity concerns and is not sustainable in the long term. Therefore, Interpipe might consider refinancing its notes, possibly by issuing new notes, depending on the market conditions, the management said.
81​ UKRAINE Country Report​ October 2020 ​ ​www.intellinews.com