Page 75 - UKRRptNov19

for the title of a largest wind power plant in Ukraine. UBJ September 26, 2019
9.2.11 Metallurgy & mining corporate news
● Metinvest
Metinvest partner Dniprovskyy Steel idles capacities. Dniprovskyy Steel, a Ukrainian iron and steel producer, plans to keep idle some of its capacities due to unfavourable steel markets, the company said in an October 2 press release. In detail, the plant will not restart, after planned maintenance, its blast furnaces Nos. 9 and 12 (total capacity of 1.75mmt of hot iron per year), oxygen converter No. 1 (2.4mmt of crude steel per year) and continuous casting machine No. 3 (1.7mmt per year). The plant will continue operating two other blast furnaces, oxygen converter No. 2 (also 2.4mmt per year) and two continuous casting machines (total capacity of 2.4mmt per year), according to an October 2 report by Metal Expert, an industry consultancy. Dniprovskyy Steel is supplied with raw materials (iron ore, coke) by Metinvest (METINV), Ukraine’s largest steelmaker. Metinvest also resells billets and long products produced by Dniprovskyy Steel. In 2018, Dniprovskyy Steel produced 2.41mmt of crude steel, 77% more y/y. The plant produced 1.73mmt of crude steel in 8M19, a 5.9% y/y increase.
Metinvest EBITDA jumps 54% m/m in July. EBITDA at Ukraine’s largest steelmaker Metinvest jumped 54.3% m/m in July to $145mn, according to its monthly results published on October 22. The holding’s revenue lost 3.7% m/m to $946mn. Metinvest’s operating cash flow before working capital changes dropped 19.1% m/m to $114mn, whereas cash flow from operations (before profit tax and interest) lost 8.7% m/m to $179mn in July. The holding’s cash outflow from investment activities jumped 43.8% m/m to $128mn, while outflow from financing activities amounted to $18mn and its end-of-month cash balance rose 8.6% m/m to $303mn. Its gross debt dropped $22mn m/m to $2,731mn. Metinvest’s metallurgical segment EBITDA dropped further into the red to $-26mn in July from $-20mn in June, while its mining segment EBITDA jumped 52.6% m/m to $174mn. For 7M19, Metinvest’s revenue dropped 6.8% y/y to $6,764mn, while its EBITDA plunged 34.0% to $1,035mn. Iron and steel product prices were mixed m/m in July, losing 2% for slabs, but gaining 2% for pig iron and billets, and 1% for flat products. Iron ore product prices jumped 7% m/m for concentrate and 2% m/m for pellets.
Metinvest affiliate Pokrovske Coal output jumps 24% in 9M19. Private joint stock company Pokrovske Coal produced 17.0 kt of raw coking coal per day in September, an 8.0% m/m increase, according to Concorde Capital’s analysis of Energy Ministry data, as reported by Interfax-Ukraine on Oct. 25. In 9M19, Pokrovske Coal produced 3.66mmt of coal, a 24.2% y/y jump. Recall, Pokrovske Coal said in its 2018 annual report that it plans to boost coal production 42% y/y to 5.63mmt in 2019. Metinvest (METINV), Ukraine's largest steelmaker, owns 25% in Pokrovske Coal assets.
Metinvest supply route completely debottlenecked by Ukrainian Railway. Ukrainian Railway (RAILUA) reported in an Oct. 29 statement that it has increased the throughput capacity of the Komysh-Zorya–Volnovakha railway section to 42 cargo trains per day by making this section fully double-track. This section used to be a major bottleneck for raw material supplies to, and for transporting iron and steel products to the Black Sea ports from, the Mariupol
75 UKRAINE Country Report November 2019 www.intellinews.com