Page 70 - UKRRptApr21

inched up 1.8% m/m to $167mn.
The ratio of Metinvest’s net debt to its last 12 month (LTM) EBITDA (excluding JVs) dropped to 0.90x at the end of January, down from 1.16x a month ago.
Metinvest’s iron and steel product prices jumped in January, gaining 16% for pig iron, 8% for slabs, 4% for billets, 8% for flat products and 4% for long products. Its iron ore concentrate price soared 27% m/m in January, while the pellet price jumped 10% m/m.
Metinvest plant to lower steel output 27% m/m in March. Azovstal, one of two steel making plants of Ukraine’s largest producer Metinvest, will lower its steel output to 9.3 kt per day (287 kt per month) in March, a 27% m/m decrease, according to Concorde Capital’s analysis of a news report by Metal Expert, an industry consultancy. The output drop will be due to a major 20-day overhaul of one of Azovstal’s two oxygen converters, Metal Expert said, adding that the overhaul started on March 2. Recall, in March Azovstal is also conducting short-term repairs of three of its blast furnaces.
Metinvest acquires additional stake in Pokrovske Coal. Metinvest (METINV), Ukraine’s largest steel and iron ore producer, increased the stake its top holding company Metinvest B.V. owns (together with affiliated persons) in PrJSC Pokrovske Coal, Ukraine’s largest coking coal producer, to 67.28%, according to a March 4 report by Interfax-Ukraine that cited a Pokrovske Coal’s regulatory disclosure. Pokrovske Coal’s disclosure said that Metinvest B.V. increased its stake in Pokrovske Coal as a result of acquiring corporate rights in Industrial Coal Holding LLC (ICH, Ukraine) on March 2. In August 2018, Interfax-Ukraine reported that Metinvest B.V. owned 24.99% of ICH. At end-2020, the stakes in Pokrovske Coal owned by Metinvest B.V. and ICH amounted to 9.99% and 57.29%, respectively, according to Pokrovske Coal’s filing with Ukrainian regulators. Two additional stakes in Pokrovske Coal, each amounting to 9.99%, were owned by Treimur Investments Limited (BVI) and Altana Limited (BVI) at end-2020, according to Pokrovske Coal’s filing. At the end of September 2020, an additional 9.99% stake in Pokrovske Coal was owned by Misandyco Holdings Ltd (Cyprus). In its 2020 financials released on February 16, Metinvest stated that at the year’s end it owned 24.77% of the so-called Pokrovske coal business that comprises several assets including Pokrovske Coal. Metinvest also stated in its 2020 financials that it planned to increase its stake in the Pokrovske coal business by 25.23% to 50.01% within a year. According to a March 5 Metinvest release to investors, Metinvest has increased its effective interest in Pokrovske coal business to a controlling stake as the result of the acquisition of an additional stake. The two most significant assets of Pokrovske coal business, which produces mostly K-grade coking coal, are Pokrovske Coal and Svyato-Varvarynska enrichment plant. In 2020, Pokrovske business mined 6.2 mmt of raw coking coal and produced 3.2 mmt of coking coal concentrate, the release said, adding that the annual processing capacity of Svyato-Varvarynska amounts to about 8 mmt of raw coal.
● Ferrexport
Ferrexpo reported 2H20 IFRS. The results materially beat our expectations on EBITDA and net income.
§ Revenue was mostly in line with BCSe at $924mn – up 19% h/h and 28% y/y (2% vs our expectations)
70 UKRAINE Country Report April 2021 www.intellinews.com