Page 73 - UKRRptSept20

EBITDA at​ ​Interpipe​ NTRP, a subsidiary of Ukraine’s largest pipe and railway wheel producer Interpipe (INTHOL), plunged 67.2% qoq ​to $17.5mn in 2Q20, according to the plant’s standalone financial report published on July 30. The plant’s revenue lost 30.5% qoq to $86.5mn in 2Q20. The prices for railway wheels, which Interpipe produces only at its NTRP plant, were 1,749 $/t in 2Q20, 15% less qoq.
● Ferrexport
Revenue slid 1.4% y/y to $776mn at Ukraine’s largest iron ore pellet exporter​ ​Ferrexpo​, the company said in its 1H20 financial report released on August 5. Its 1H20 EBITDA dropped 5.3% y/y to $352mn and net income lost 7.6% y/y to $250mn. Operating cash flow before working capital decreased 17.5% y/y to $316mn, while net cash from operating activities inched up 1.0% y/y to $258mn. CapEx slid 15.8% y/y to $96mn.​ ​Ferrexpo’s net debt dropped 38.3% y/y to $174mn at end-June. The net debt-to-EBITDA ratio fell to 0.31x at end-June, down from 0.44x a year ago. Gross debt slid 8.2% y/y to $343mn at the end of June.
● Other
PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in January-June of this year invested $117.2mn in production​. According to the company's press release, which does not provide comparative indicators for the same period of the previous year, of the $117.2mn invested in the development of production in the first half of the year, operating costs amounted to $55.6mn, and capital costs exceeded $61.6mn. At the same time, it is noted that the plant does not abandon its plans even in the face of falling prices for rolled metal in the world markets and a sharp decline in sales amid the coronavirus pandemic. At the beginning of this year, the long-term sustainable development strategy of the enterprise was updated, and the company is ready to implement it within the next five years. The construction of new modern units and the modernization of existing ones makes it possible to phase out outdated technologies in stages.
Russian metals giant Norilsk Nickel reported net profit that crashed to RUB1.2bn ($16.4mn) in January–June from RUB196.2bn ($2.7bn) in the same period of 2019, the company said on August 10. The reason for the fall was a reserve fund the company had to create to cope with a $2bn fine following a huge oil spill in July at its facilities in Russia’s Far North. "EBITDA fell by 51% year-on-year tо $1.8bn due to the recognition of $2.1bn expenses on environmental reserves linked to compensation of environmental damage following a diesel fuel spill on the industrial territory of power station #3 in Norilsk," the statement said. Revenue rose 14.3% to RUB443.712bn. Earnings before interest, taxes, depreciation, and amortization (EBITDA) plummeted 51% to $1.8bn.
9.2.12 ​Other sector corporate news
Ukraine’s leading aeronautics producer Motor Sich reported a 16% y/y increase in net revenue to UAH4,739mn in 1H20​. Its EBITDA surged 14x y/y to UAH1,529mn and its bottom line turned to positive UAH593mn in 1H20, from negative UAH426mn a year before. The company’s net debt climbed 11% YTD to UAH1,918mn as of end-June. Management said in its quarterly report it has optimized its activity to focus on the projects that are paying back in the
73​ UKRAINE Country Report​ September 2020 ​ ​www.intellinews.com