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Cash inflow due to changes in accounts payable plunged 99% m/m to $1mn in May. The holding’s cash inflow from investment activities was $43mn in May, compared to an outflow of $60mn in April. Metinvest’s outflow from financing activities amounted to $251mn and its end-of-month cash balance inched up 2.9% m/m to $1,239mn. Its gross debt decreased $247mn m/m to $2,925mn, while its net debt dropped $282mn m/m to $1,686mn. Metinvest metallurgical segment’s EBITDA (including JVs) rose 17.3% m/m to $367mn in May, while its mining segment’s EBITDA added 15.3% m/m to $460mn. Excluding JVs, Metinvest metallurgical segment’s EBITDA gained 15.1% m/m to $321mn in May, while its mining segment’s EBITDA advanced 7.8% m/m to $359mn. The ratio of Metinvest’s net debt to its last 12 month (LTM) EBITDA (excluding JVs) dropped to 0.47x at the end of May, down from 0.63x a month ago. Metinvest’s iron and steel product prices continued rising in May, gaining 1% for pig iron, 6% for slabs, 7% for billets, 13% for flat products and 10% for long products. Its iron ore concentrate price jumped 12% m/m in May, while the pellet price gained 11% m/m.
Ukraine’s largest steelmaker Metinvest reported on August 4 a 5% qoq increase in steel production at its subsidiaries to 2.229 mmt in 2Q21. Azovstal’s output added 12% qoq to 1.185 mmt in 2Q21, while Ilyich Steel’s output dropped 3% qoq in 2Q21 to 1.044 mmt, according to the holding’s quarterly operational update. Year-on-year, Metinvest's 1H21 crude steel output added 10% to 4.358 mmt. The holding’s hot iron output in 2Q21, 2.254 mmt, rose 5% qoq, and the 1H21 volume was up 8% y/y to 4.405 mmt. The 2Q21 output of semi-finished products at Metinvest dropped 10% qoq to 687 kt as its merchant slab output dropped 19% qoq to 395 kt while its merchant pig iron output added 5% qoq to 292 kt. The holding’s finished product output rose 9% qoq in 2Q21 to 1.819 mmt due to an 11% qoq increase in hot-rolled plate output to 778 kt, a 9% gain in hot-rolled coil production to 556 kt, and a 9% qoq rise in long product output to 235 kt, which was partially offset by an 11% qoq drop in cold-rolled coil production to 75 kt. For 1H21, Metinvest’s output of semi-finished products lost 4% y/y to 1.452 mmt while its finished product output jumped 22% y/y to 3.481 mmt. Total coke production inched up 2% qoq to 1.198 mmt in 2Q21, while merchant coke output lost 9% qoq to 471 kt. For 1H21, total coke production was flat y/y at 2.368 mmt, while merchant coke output inched up 3% y/y to 0.991 mmt. Total 2Q21 iron ore concentrate production added 4% qoq to 8.069 mmt, whereas output of merchant iron ore products rose 2% qoq to 4.924 mmt due to a 16% qoq rise in merchant iron ore concentrate production to 3.312 mmt that was offset by an 18% qoq drop in merchant pellet production to 1.612 mmt. Total 1H21 iron ore concentrate production rose 5% y/y to 15.864 mmt, whereas output of merchant iron ore products slid 1% y/y to 9.756 mmt. Production of coking coal concentrate at Metinvest skyrocketed 73% qoq to 1,715 kt in 2Q21 (+76% y/y to 2.705 mmt in 1H21) due to the consolidation of Pokrovske coal business from March.
● Interpipe
EBITDA at Interpipe NTRP, a subsidiary of Ukraine’s largest pipe and railway wheel producer Interpipe (INTHOL), jumped 3.9x q/q to $5.9mn in 2Q21, according to the plant’s standalone financial report published on July 30. The plant’s revenue lost 13.7% qoq to $69.6mn in 2Q21. The prices for railway wheels, which Interpipe produces only at its NTRP plant, were 1,285 USD/t in 2Q21, a 4% qoq rise.
Interpipe to face higher duties on pipe exports to US. Ukraine’s largest
85 UKRAINE Country Report September 2021 www.intellinews.com