Page 64 - UKRRptMar21

largest steelmaker Metinvest jumped 22.1% m/m to USD 321 mln in December, according to its monthly results published on Feb. 16. The holding’s revenue increased 8.0% m/m to USD 1,016 mln.
EBITDA excluding joint ventures (JVs) added 21.9% m/m to USD 256 mln in December.
Metinvest’s operating cash flow before working capital changes climbed 17.1% m/m to USD 240 mln in December, whereas cash flow from operations after working capital changes (but before profit tax and interest) dropped 28.9% m/m to USD 217 mln in December Cash flow due to changes in accounts receivable was negative USD 74 mln in December, compared with positive USD 63 mln in November. Cash inflow due to changes in accounts payable jumped 95.0% m/m to USD 39 mln in December.
The holding’s cash outflow from investment activities slid 6.2% m/m to USD 76 mln. Metinvest’s outflow from financing activities amounted to USD 105 mln and its end-of-month cash balance inched up 1.6% m/m to USD 826 mln. Its gross debt slid USD 3 mln m/m to USD 2,937 mln, while net debt dropped USD 16 mln m/m to USD 2,111 mln.
Metinvest metallurgical segment’s EBITDA (including JVs) dropped 16.9% m/m to USD 113 mln in December, while its mining segment’s EBITDA jumped 47.9% m/m to USD 210 mln.
Excluding JVs, Metinvest metallurgical segment’s EBITDA dropped 25.4% m/m to USD 94 mln in December, while its mining segment’s EBITDA soared 65.7% m/m to USD 164 mln.
The ratio of Metinvest’s net debt to its last 12 month (LTM) EBITDA (excluding JVs) dropped to 1.16x at the end of December, down from 1.40x a month ago.
In 2020, Metinvest’s revenue dropped 2.8% yoy to USD 10,453 mln, while its EBITDA including JVs soared 81.7% to USD 2,204 mln and EBITDA excluding JVs jumped 73.5% yoy to USD 1,815 mln.
Metinvest’s iron and steel product prices mostly advanced in December, gaining 4% for pig iron, 2% for billets, 1% for flat products and 12% for long products, but losing 2% for slabs. Its iron ore concentrate price gained 10% m/m in December, while the pellet price rose 14% m/m.
​Metinvest​, Ukraine’s largest steelmaker, might increase its CapEx to $800-850mn in 2021, or 20-30% more y/y​, according to Metinvest’s corporate finance and treasury director Oleksandr Lyubarev, who spoke on the holding's 2020 results during a call with investors on Feb 16.
The steel and iron ore markets look overheated right now and the prices might fall during 2021, but the drop might be moderate, according to Dmytro Nikolayenko, Metinvest’s sales director who also spoke on the February 16 call. The coronavirus vaccination campaigns around the world are a reason for optimism regarding the markets, Nikolayenko said.
64​ UKRAINE Country Report​ March 2021 ​ ​www.intellinews.com