Page 72 - UKRRptDec19
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Since 2013, Metinvest has invested $1.2bn in modernizing Ilyich Iron and Steel Works in Mariupol, Donetsk Oblast. Three weeks ago, the company inaugurated a $110mn modernization of its LPC-1700 plant, which makes hot-rolled coils. Aiming to win 4.5% of the world market for this kind of sheet steel, the upgrade raises the combined rolled coil production of Metinvest’s two steel plants in Mariupol to 4.5mn tons. For the job, electric motors were designed and manufactured by Shanghai Electric Machinery Company and engineering and technology were supplied by Primetals Technologies of Austria.
Metinvest EBITDA drops 18% m/m in August. EBITDA at Ukraine’s largest steelmaker Metinvest (METINV) dropped 17.9% m/m in August to $119mn, according to its monthly results published on November 1. The holding’s revenue lost 9.8% m/m to $853mn. Metinvest’s operating cash flow before working capital changes dropped 7.0% m/m to $106mn, whereas cash flow from operations (before profit tax and interest) lost 26.8% m/m to $131mn in August. The holding’s cash outflow from investment activities plunged 53.9% m/m to $59mn, while outflow from financing activities amounted to $43mn and its end-of-month cash balance dropped 21.5% m/m to $238mn. Its gross debt dropped $52mn m/m to $2,679mn. M etinvest’s metallurgical segment EBITDA plunged further into the red to $-43mn in August from $-26mn in July, while its mining segment EBITDA slid 6.3% m/m to $163mn. For 8M19, Metinvest’s revenue dropped 6.6% y/y to $7,617mn, while its EBITDA plunged 34.9% to $1,154mn. Steel product prices mostly dropped m/m in August, losing 5% for slabs, 4% for billets and 2% for long products. However, prices for flat products were flat m/m, and pig iron prices rose 5% m/m. Iron ore product prices slid 6% m/m for concentrate and 1% m/m for pellets.
Metinveststeeloutputdrops14.5%m/minOctoberS teelproductionat Ukraine’s largest producer Metinvest (METINV) was 18.9 kt per day (or 586 kt per month) in October, a 14.5% m/m loss, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. That result includes Azovstal (AZST UK) and Ilyich Steel (MMKI UK) figures. Ilyich Steel reported a 25.4% m/m plunge in steel production to 7.9 kt per day, while Azovstal’s output slid 4.3% m/m to 11.0 kt per day in October. The holding's hot iron output dropped 15.0% m/m to 20.7 kt per day. In 10M19, Metinvest's steel output was 6.49 mmt, or 6.4% more y/y.
Metinvest steel output steady qoq in 3Q19 Ukraine’s largest steelmaker Metinvest (METINV) reported on November 1 no qoq change in steel production, at 1.982 mmt, at its subsidiaries in 3Q19. Azovstal’s output lost 5% qoq to 1,025 kt in 3Q19, while Ilyich Steel’s output gained 6% qoq in 3Q19 to 957 kt, according to the holding’s operational update. In 9M19, Metinvest's crude steel output rose 6% y/y to 5.905 mmt due to a 16% y/y jump at Ilyich Steel that was partially offset by a 3% y/y drop at Azovstal. The holding’s hot iron output in 3Q19, 2.033 mmt, slid 1% qoq. Its 9M19 hot iron production lost 3% y/y to 6.041 mmt, according to the release. The 3Q19 output of semi-finished products at Metinvest slid 1% qoq to 809 kt as its merchant pig iron output dropped 13% qoq to 290 kt and its slab output gained 7% qoq to 519 kt. The holding’s finished product output lost 8% qoq in 3Q19 to 1.417 mmt due to a 28% qoq plunge in hot-rolled coil output to 157 kt, a 5% qoq loss in hot-rolled plate output to 865 kt, a 7% qoq decrease in long product output to 186 kt, and an 11% drop in galvanized coil output to 93 kt. The qoq plunge in flat steel production was due to the planned major overhaul of Mill 1700 at
72 UKRAINE Country Report December 201 www.intellinews.com
