Page 157 - RusRPTSept22

told newspaper Helsingin Sanomat on August 22. The amount of the claim comprises €800mn of advanced payment and €200mn of interest. According to the official, Russia will likely send a counterclaim soon. The Hanhikivi-1 plant was to operate Russia’s 1,200-megawatt VVER reactor. Fennovoima, 34% of which is owned by Rosatom, terminated the contract for construction in May.
9.2.12 Mines and Minerals - steel & iron
EVRAZ released relatively weak 1H22 IFRS results, demonstrating 15% q/q decrease in EBITDA (in line with our estimate), FCF was negative driven by a surge in working capital due to an increase in inventory and receivables.
● Revenue rose by 1% h/h to c$8bn and gained 31% y/y (-1% vs BCSe)
● EBITDA was down -15% h/h to c$2.5bn, but up 19% y/y (-1% vs
BCSe)
● Adjusted NI went down 5% h/h to c$1.8bn and gained 39% y/y (-1% vs
BCSe) FCF was negative and recorded -$59mn
● Net debt increased by 21% h/h to c$3.1bn,while down 2% y/y
● The company expects slowdown in revenue and some working capital
release in 2H22
● Note the company's shares are not trading currently in the LSE and
there is uncertainty towards dividends so far, while EVRAZ cannot have a listing on MOEX given the UK laws, the company said at the conference call
Mechel released 2Q22 Trading Results. Mechel demonstrated quite stable trading results primarily in steel space, while coal sales showed the decrease in light of high figures of 1H21 and limited carrying capacity of railroads leading to Far Eastern ports in 2Q22.
● Total raw coal output rose by 12% q/q and 7% y/y to c3.2mt
● Coking coal concentrate sales went up by 45% q/q (-18% y/y) to
c1.2mt
● Steam coal sales dropped by 14% q/q to 728kt though up 2% y/y
● Iron ore rose by 37% q/q and 22% y/y to 506kt
● Crude steel production declined 1% q/q to 924kt though up 5% y/y
● Steel products sales were flat q/q (the increase in sales of long
products offset the decline in sales of other steel products) to 917kt, but down 6% y/Y
9.2.13 Mines and Minerals - fertilisers
Phosagro published expectedly strong 1H22 IFRS results on August 18. Results indeed came out very strong (ex one-offs). Revenues surged 91% y/y to Rb336.5bn, and EBITDA jumped 129% to Rb163.9bn, net profit doubled to Rb113.9bn. Export price volatility explains a big margin of error between reported numbers and our estimates. According to Phosagro’ press-release,
157 RUSSIA Country Report September 2022 www.intellinews.com