PAO Severstal (SVST)
Severstal reports Q3 2019 operational results
11-Oct-2019 / 09:00 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Severstal reports Q3 2019 operational results
Moscow, Russia - 11 October 2019 - PAO Severstal (MICEX-RTS: CHMF; LSE:
SVST), one of the world's leading vertically integrated steel and
steel-related mining companies, today announces its operational results for
Q3 2019.
Q3 2019 GROUP HIGHLIGHTS
· Hot metal output increased 7% q/q in Q3 2019 to 2.46 mln tonnes (Q2
2019: 2.30 mln tonnes) following short-term maintenance works at BF#1,
BF#4 and BF#5 in the previous quarter. Crude steel production declined 1%
to 3.03 mln tonnes (Q2 2019: 3.06 mln tonnes) mainly reflecting a decline
in EAF steel output following the sale of Balakovo mini-mill in July 2019.
· Consolidated steel product sales remained flat q/q at 2.83 mln tonnes in
Q3 2019 (Q2 2019: 2.83 mln tonnes). The share of domestic sales remained
at historically high levels of 67% due to their continued attractiveness
(Q2 2019: 70%).
· The share of high value-added (HVA) products within the sales portfolio
amounted to 45% (Q2 2019: 46%), reflecting a decline in sales of
galvanised, colour-coated and cold-rolled products due to short-term
maintenance works at one of the pickling lines. This was offset by higher
sales volumes of thick plate and lower sales of long products.
· Coking coal concentrate sales volumes from Vorkutaugol surged 41% q/q in
line with the 42% increase q/q in production of run-of-mine coal.
· Iron ore pellet sales declined 15% to 2.46 mln tonnes (Q2 2019: 2.90 mln
tonnes) reflecting higher production of iron ore concentrate at Karelsky
Okatysh.
· Iron ore concentrate sales volumes increased 35% to 1.93 mln tonnes (Q2
2019: 1.43 mln tonnes) driven by production volumes growth at Karelsky
Okatysh.
9M 2019 GROUP HIGHLIGHTS
· Hot metal output increased 3% y/y to 7.13 mln tonnes in 9M 2019 (9M
2018: 6.91 mln tonnes) driven by improved maintenance works efficiency and
higher quality of raw materials. Crude steel production remained almost
flat at 9.13 mln tonnes (9M 2018: 9.10 mln tonnes), predominantly
reflecting higher aggregate productivity levels, which were offset by
lower EAF production in Q3 following the sale of Balakovo mini-mill.
· Coking coal concentrate sales volumes from Vorkutaugol increased 43%
y/y, driven by growth in coal production. Iron ore concentrate sales
volumes increased 14% y/y to 4.66 mln tonnes (9M 2018: 4.08 mln tonnes)
predominantly reflecting production volumes growth at Karelsky Okatysh.
· The share of HVA products remained high at 45% in 9M 2019, primarily
reflecting higher sales of galvanised and colour-coated products following
the launch of new product lines, which reached their full utilisation
rates in Q1 2019.
SUMMARY OF KEY PRODUCTION, SALES VOLUMES
Production, Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, %
thousands of
tonnes
Crude Steel 3,032 3,057 (1%) 9,133 9,098 0%
(Russian
Steel)
Hot metal 2,458 2,304 7% 7,125 6,913 3%
(Russian
Steel)
Sales Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, %
volumes,
thousands of
tonnes
Coking coal 1,351 958 41% 3,340 2,331 43%
concentrate
Iron ore 2,461 2,899 (15%) 8,192 8,054 2%
pellets
Iron ore 1,931 1,428 35% 4,660 4,080 14%
concentrate
Total steel 2,834 2,837 0% 8,503 8,420 1%
products
(Consolidate
d)
Total steel 2,847 2,848 0% 8,538 8,453 1%
products
(Russian
Steel)
High value Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, %
added steel
products, %
Severstal 45% 46% (1 ppts) 45% 46% (1 ppts)
(Consolidate
d)
Severstal 45% 46% (1 ppts) 45% 46% (1 ppts)
Russian
Steel
SEVERSTAL'S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
Sales volumes, Q3 2019 Q2 Change, % 9M 2019 9M Change,
thousands of 2019 2018 %
tonnes
Coal: 330 388 (15%) 1,250 1,127 11%
Coking coal 66 108 (39%) 331 190 74%
concentrate
Steam coal 264 280 (6%) 919 937 (2%)
Iron ore: 1,443 1,686 (14%) 4,785 5,277 (9%)
Iron ore 1,380 1,488 (7%) 4,170 4,707 (11%)
pellets
Iron ore 63 198 (68%) 615 570 8%
concentrate
Semi-finished 89 69 29% 279 538 (48%)
products
Rolled 2,292 2,313 (1%) 6,916 6,533 6%
products:
Hot - rolled 1,168 1,040 12% 3,310 2,878 15%
coil
Hot - rolled 244 225 8% 702 642 9%
plate
Cold - rolled 226 242 (7%) 743 990 (25%)
coil
Galvanised and 238 254 (6%) 729 627 16%
metallic coated
coil
Colour coated 122 141 (13%) 365 294 24%
coil
Long products 294 411 (28%) 1,067 1,102 (3%)
Downstream 453 455 0% 1,308 1,349 (3%)
products:
Metalware 147 140 5% 413 424 (3%)
products
Large diameter 100 106 (6%) 303 333 (9%)
pipes
Other tubes, 206 209 (1%) 592 592 0%
pipes, formed
shapes
SEVERSTAL RESOURCES
· Coking coal concentrate sales volumes from Vorkutaugol surged 41% q/q
reflecting the 42% increase q/q in production of run-of-mine coal.
· Iron ore pellet sales declined 15% to 2.46 mln tonnes (Q2 2019: 2.90 mln
tonnes) reflecting higher production of iron ore concentrate at Karelsky
Okatysh.
· Iron ore concentrate sales volumes increased 35% to 1.93 mln tonnes (Q2
2019: 1.43 mln tonnes) driven by production volumes growth at Karelsky
Okatysh.
Sales Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, %
volumes,
thousands
tonnes
Coal: 1,616 1,238 31% 4,260 3,269 30%
Coking coal 1,351 958 41% 3,340 2,331 43%
concentrate
Steam coal 265 280 (5%) 920 938 (2%)
Iron ore: 4,392 4,327 2% 12,852 12,134 6%
Iron ore 2,461 2,899 (15%) 8,192 8,054 2%
pellets
Iron ore 1,931 1,428 35% 4,660 4,080 14%
concentrate
SEVERSTAL RUSSIAN STEEL ('RSD')
· RSD steel product sales remained flat q/q at 2.85 mln tonnes in Q3 2019
(Q2 2019: 2.85 mln tonnes).
· The share of domestic sales declined 3 ppts, to 67%, but remained at
historically high levels due to a favourable domestic pricing environment
(Q2 2019: 70%).
· The share of high value-added (HVA) products within the sales portfolio
amounted to 45% (Q2 2019: 46%), reflecting a decline in sales of
galvanised, colour-coated and cold-rolled products due to short-term
maintenance works at one of the pickling lines. This was offset by higher
sales volumes of thick plate and lower sales of long products.
· LDP sales volumes declined 6% q/q, reflecting changes in the product
mix. Izhora Pipe Mill maintained its 100% utilisation rate in Q3 2019.
· The weighted average selling price for the whole range of rolled steel
products remained almost flat in Q3 2019, reflecting the flexibility of
Severstal's distribution channels as well as a favourable pricing
environment in the domestic market.
Sales volumes, Q3 2019 Q2 Change, % 9M 2019 9M Change,
thousands of 2019 2018 %
tonnes
Total steel 2,847 2,848 0% 8,538 8,453 1%
products
Semi-finished 89 69 29% 279 538 (48%)
products
Rolled 2,305 2,322 (1%) 6,949 6,565 6%
products:
Hot - rolled 1,169 1,040 12% 3,311 2,879 15%
coil
Hot - rolled 245 225 9% 703 642 10%
plate
Cold - rolled 226 242 (7%) 743 990 (25%)
coil
Galvanised and 238 254 (6%) 729 627 16%
metallic coated
coil
Colour coated 122 141 (13%) 365 294 24%
coil
Long products 305 420 (27%) 1,098 1,133 (3%)
Downstream 453 457 (1%) 1,310 1,350 (3%)
products:
Metalware 148 142 4% 416 425 (2%)
products
Large diameter 100 106 (6%) 303 333 (9%)
pipes
Other tubes, 205 209 (2%) 591 592 0%
pipes, formed
shapes
Sales price, Q3 2019 Q2 Change, % 9M 2019 9M Change,
$/tonne 2019 2018 %
Semi-finished 414 450 (8%) 427 468 (9%)
products
Hot - rolled 510 514 (1%) 506 562 (10%)
coil
Hot-rolled 683 659 4% 660 716 (8%)
plate
Cold - rolled 647 629 3% 621 627 (1%)
coil
Galvanised and 733 729 1% 724 761 (5%)
metallic coated
coil
Colour coated 905 918 (1%) 894 943 (5%)
coil
Long products 498 484 3% 476 494 (4%)
Metalware 965 981 (2%) 965 970 (1%)
products
Large diameter 945 1,033 (9%) 996 1,116 (11%)
pipes
Other tubes, 580 585 (1%) 578 611 (5%)
pipes, formed
shapes
Notes:
1) All production data is reported in thousands of tonnes;
2) Sales prices are stated on EXW basis;
3) Segmental data includes intercompany sales;
4) Semi-finished products include pig iron, slabs, billets, ingots, steel
casting and forgings;
5) Large diameter pipes include all pipes with a diameter between 820 and
1420 mm.
Contacts
Investor Relations
Evgeny Belov
T: +7 (495) 926-77-66 ext. 6445
evgenii.belov@severstal.com
Public Relations
Anastasia Mishanina
T: +7 (495) 926-77-66 ext. 6457
anastasia.mishanina@severstal.com
Severstal's financial communications agency - Hudson Sandler
Andrew Leach / Emily Dillon
T: +44 (0) 20 7796 4133
***
P?? Severstal is one of the world's leading vertically-integrated steel and
steel related mining companies, with assets in Russia, Latvia and Poland.
Severstal is listed on RTS and MICEX and the company's GDRs are traded on
the LSE. Severstal reported revenue of $8,580 million and EBITDA of $3,142
million in 2018. Severstal's crude steel production in 2018 reached 12.0
million tonnes. www.severstal.com [1]
ISIN: US8181503025
Category Code: TST
TIDM: SVST
LEI Code: 213800OKDPTV6K4ONO53
Sequence No.: 23109
EQS News ID: 888559
End of Announcement EQS News Service
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