1st Quarter 2010 Trading Update
May 17 2010 - 11:07AM
UK Regulatory
TIDMEVR
RNS Number : 0661M
Evraz Group S.A.
17 May 2010
First Quarter of 2010 Trading Update
17 May 2010 - Evraz Group S.A. (LSE: EVR) ("Evraz") today issued its first
quarter of 2010 trading update.
The information in this press release has been prepared in accordance with
management accounting policies. Inter-company transactions have been eliminated
in consolidation. This announcement does not contain sufficient information to
constitute an interim financial report as defined in International Auditing
Standards 34, "Interim Financial Reporting". The following results may differ
from financial statements prepared in accordance with International Financial
Reporting Standards ("IFRS"). The numbers in this press release have not been
audited or reviewed.
Evraz Group S.A. publishes consolidated financial statements prepared in
accordance with IFRS for the six months ended June 30 and for the year ended
December 31, in each year.
Highlights:
· Revenue for the three-month period ended 31 March 2010 was US$2,970 million
· Adjusted EBITDA[1] was US$424 million with adjusted EBITDA margin of 14.3%
· Interest expense was US$177 million
· Total debt as of 31 March 2010 amounted to US$7,953 million, including
US$2,713 million of short-term loans and current portion of long-term debt [2]
· Cash and cash equivalents at the end of the period were US$793 million
· Capital expenditures amounted to US$160 million
· Total steel products sales in the three-month period ended 31 March
2010 amounted to 3.87 million tonnes
· Iron ore sales volumes including intersegment shipments totalled 4.2 million
tonnes
· Coal sales including intersegment shipments were 2.5 million tonnes,
including 0.9 million tonnes of raw coking coal, 0.6 million tonnes of steam
coal, 0.9 million tonnes of coking coal concentrate and 0.1 million tonnes of
steam concentrate
Selected sales data:
+------------------------+------------+----------+-----------+----------+
| | 1Q 2010 | 1Q 2009 |
+------------------------+-----------------------+----------------------+
| | Sales |Revenue, | Sales |Revenue, |
| | volumes*, | US$ |volumes*, | US$ |
| | thousand | million | thousand | million |
| | tonnes | | tonnes | |
+------------------------+------------+----------+-----------+----------+
| Steel products | 3,870 | 2,368 | 3,456 | 2,023 |
+------------------------+------------+----------+-----------+----------+
| Pig iron | 5 | 2 | 109 | 30 |
+------------------------+------------+----------+-----------+----------+
| Semi-finished products | 1,260 | 563 | 1,275 | 478 |
+------------------------+------------+----------+-----------+----------+
| Construction | 1,200 | 706 | 812 | 379 |
| products | | | | |
+------------------------+------------+----------+-----------+----------+
| Railway | 455 | 336 | 418 | 288 |
| products | | | | |
+------------------------+------------+----------+-----------+----------+
| Flat-rolled | 645 | 437 | 484 | 394 |
| products | | | | |
+------------------------+------------+----------+-----------+----------+
| Tubular | 189 | 255 | 236 | 392 |
| products | | | | |
+------------------------+------------+----------+-----------+----------+
| Other steel | 116 | 69 | 121 | 62 |
| products | | | | |
+------------------------+------------+----------+-----------+----------+
| Mining | 1,775 | 136 | 1,695 | 78 |
| products | | | | |
+------------------------+------------+----------+-----------+----------+
| Iron ore | 865 | 51 | 589 | 29 |
| products | | | | |
+------------------------+------------+----------+-----------+----------+
| Coal | 910 | 85 | 1,106 | 48 |
+------------------------+------------+----------+-----------+----------+
| Coking coal | 38 | 1 | 78 | 2 |
+------------------------+------------+----------+-----------+----------+
| Coal | 332 | 41 | 200 | 13 |
| concentrate | | | | |
+------------------------+------------+----------+-----------+----------+
| Steam coal | 501 | 40 | 740 | 27 |
+------------------------+------------+----------+-----------+----------+
| Steam | 39 | 4 | 88 | 6 |
| concentrate | | | | |
+------------------------+------------+----------+-----------+----------+
| Vanadium | 5,006 | 124 | 2,142 | 64 |
| products | | | | |
| (metric tonnes | | | | |
| of vanadium | | | | |
| equivalent) | | | | |
+------------------------+------------+----------+-----------+----------+
| Other | | 342 | | 248 |
| revenues** | | | | |
+------------------------+------------+----------+-----------+----------+
*Inter-company volumes have been eliminated
**Including US$66 million and US$102 million of revenue from rendering of
services (social, infrastructure, transportation, maintenance etc. services
provided to third parties) in 1Q 2010 and 1Q 2009, respectively
Outlook
In April and May of 2010 demand from Russian construction market continued to
strengthen, while international markets demonstrated positive price and volume
developments. Due to the 2-3-month time lag between booking of our export sales
(and therefore setting the price) and actual deliveries, average prices in the
second quarter of 2010 reflect international spot price increase in the first
quarter.
Consequently we expect to deliver 2Q 2010 EBITDA within the range of US$725-825
million.
A series of refinancing activities, including drawdown of a loan from
Gazprombank which will be due in 2015, is expected to decrease our short-term
debt by US$1.0-1.5 billion by the end of 2Q 2010.
###
[1]Profit from operations before depreciation, depletion and amortisation,
impairment of assets, loss (gain) on disposal of property, plant & equipment and
foreign exchange loss (gain).
[2]US$2,713 million includes four tranches of the VEB loan totalling US$805
million, which were classified as long-term debt in the Companys statement of
financial position as of 31 December 2009, but are re-classified as short-term
debt as of 31 March 2010, resulting from renegotiation of the loan agreement
with VEB (for details please refer to Notes 21 and 32 of the Companys
consolidated financial statements for the year ended 31 December 2009) aimed at
reduction of interest payments.
For further information
Media contact:
Alex Agoureev
VP, Public Relations
+7 985
122 4822
media@evraz.com
Investor contact:
Alexander Boreyko
Director, Investor Relations
+7
495 232 1370
ir@evraz.com
Evraz Group S.A. is a large vertically-integrated steel, mining and vanadium
business with operations in the Russian Federation, Ukraine, Europe, USA, Canada
and South Africa. The Company was ranked the 15th largest steel producer in the
world based on crude steel production of 17.7 million tonnes in 2008. In 2009,
Evraz produced 15.3 million tonnes of crude steel and sold 14.3 million tonnes
of steel products. Evraz's internal consumption of iron ore and coking coal is
fully covered by its mining operations. Evraz's consolidated revenues for the
year ended 31 December 2009 were US$9,772 million and consolidated adjusted
EBITDA amounted to US$1,237 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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