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$700mn that ArcelorMital, Ukraine’s largest foreign investor, is spending to replace or rebuild Soviet-era equipment – largely sinter mills and blast furnaces. The investments will save energy and reduce air pollution by 78,000 tons a year, Volodymyr Tesliuk, deputy director for mining, said at the groundbreaking ceremony.
● Metinvest
Metinvest EBITDA rises 5.9% m/m in August. EBITDA at Ukraine’s largest steelmaker Metinvest inched up 5.9% m/m to USD 216 mln in August, according to its monthly results published on Oct. 26. The holding’s revenue fell 7.9% m/m to USD 838 mln. EBITDA excluding joint ventures (JVs) slid 3.4% m/m to USD 168 mln in August. Metinvest’s operating cash flow before working capital changes climbed 6.5% m/m to USD 163 mln in August, whereas cash flow from operations after working capital changes (but before profit tax and interest) plunged 45.4% m/m to USD 100 mln in August. Cash flow due to changes in accounts receivable was positive USD 20 mln in August, compared with negative USD 89 mln in July. Cash inflow due to changes in accounts payable was negative USD 83 mln in August, compared with positive USD 53 mln in July. The holding’s cash outflow from investment activities lost 14.3% m/m to USD 54 mln. Metinvest’s outflow from financing activities amounted to USD 71 mln and its end-of-month cash balance retreated 14.4% m/m to USD 523 mln. Its gross debt slid USD 64 mln m/m to USD 3,017 mln, while net debt increased USD 24 mln m/m to USD 2,494 mln. Metinvest’s metallurgical segment EBITDA (including JVs) jumped 59.6% m/m to USD 91 mln in August, while its mining segment EBITDA lost 13.0% m/m to USD 134 mln. Excluding JVs, Metinvest’s metallurgical segment EBITDA advanced 35.5% m/m to USD 84 mln in August, while its mining segment EBITDA dropped 21.8% m/m to USD 93 mln. The ratio of Metinvest’s net debt to its last-12-month (LTM) EBITDA (excluding JVs) dropped to 2.46x at the end of August, down from 2.58x a month ago. In 8M20, Metinvest’s revenue dropped 11.8% yoy to USD 6,716 mln, while its EBITDA including JVs slid 1.6% to USD 1,135 mln and EBITDA excluding JVs lost 3.1% yoy to USD 956 mln. Metinvest’s iron and steel product prices advanced in August, gaining 6% for pig iron, 7% for slabs, 1% for billets, 4% for flat products and 8% for long products. Its iron ore concentrate price lost 6% m/m in August, while the pellet price slid 2% m/m.
Metinvest EBITDA skyrockets 3.8x m/m in July. EBITDA at Ukraine’s largest steelmaker Metinvest skyrocketed 3.8x m/m to $204mn in July, according to its monthly results published on October 5. The holding’s revenue gained 7.4% m/m to $910mn. Recall, Metinvest’s EBITDA was $54mn in June, plummeting 67% m/m due to accounts receivable impairments of $112mn that month. From the $166mn of June’s EBITDA adjusted for the impairments, July’s EBITDA rose 22.9%. EBITDA excluding that of joint ventures (JVs) soared 6x m/m to $174mn in July. M etinvest’s operating cash flow before working capital changes climbed 8.5% m/m to $153mn in July, whereas cash flow from operations after working capital changes (but before profit tax and interest) plunged 47.9% m/m to $183mn in July. Cash flow due to changes in accounts receivable was negative $89mn in July, compared with positive $83mn in June. Cash inflow due to changes in accounts payable was $53mn in July, a 55.8% m/m plunge. The holding’s cash outflow from investment activities jumped 2.4x m/m to $63mn. Metinvest’s inflow from financing activities amounted to $28mn and its end-of-month cash balance climbed 31.4% m/m to $611mn. Its gross debt rose $71mn m/m to $3,081mn, while net
69 UKRAINE Country Report November 2020 www.intellinews.com
