TIDMEVR
RNS Number : 2578Q
Evraz Group S.A.
17 October 2011
EVRAZ GROUP 3Q 2011 OPERATIONAL RESULTS
17 October 2011 - EVRAZ Group S.A. (LSE: EVR) ("EVRAZ") today
released its operational results for the third quarter of 2011.
3Q 2011 HIGHLIGHTS:
-- Steel production volumes increased by 4% year-on-year due to
demand recovery, but decreased by 5% quarter-on-quarter mainly due
to seasonal repairs
-- Steel product mixshifted in favour of finished goods
-- Coking coal production decreased due to longwall
repositioning at two of our mines
-- Prices for steel products and coking coal remained
essentially flat
STEEL
In 3Q 2011, the production of crude steel increased by 4%
against 3Q 2010 due to higher production volumes in North America
and Ukraine. However, compared to the previous quarter it decreased
by 5% due to lower production volumes in Russia, the Czech Republic
and South Africa. Factors that impacted the crude steel production
at each region are described below. The output of finished goods
reflected the redistribution of crude steel supply between
different product groups primarily due to seasonal fluctuations of
market demand.
Russia
Crude steel production volumes decreased by 4% vs. 2Q 2011 due
to seasonal repairs and remained flat relative to the same quarter
last year. Production of semi-finished steel decreased by 11% vs.
2Q 2011 and by 17% vs. 3Q 2010 in favour of higher value added
products as a result of improving domestic demand for construction
and flat-rolled products. Their output increased by 5% and 26%
respectively compared to 2Q 2011 and by 13% and 36% respectively
compared to 3Q 2010. Rail production in Russia decreased compared
to the previous quarter because of major repairs at Zapsib and the
launch of rail mill reconstruction at NTMK in September.
Ukraine
In 3Q 2011, EVRAZ DMZ steel mill increased production of crude
steel by 21% compared to the similar period last year and by 6%
over 2Q 2011 as a result of improved demand for finished goods. The
output of steel rolled products rose by 10%. Volumes of saleable
pig iron declined considerably, compared both to 3Q 2010 and to 2Q
2011, due to the redistribution of hot metal to steelmaking.
North America
Crude steel production was flat compared to the previous
quarter. It increased by 7% vs. 3Q last year as a result of higher
steel capacities' utilisation due to improved market sentiment.
Production of tubular goods increased by 10%, following seasonal
increase in demand. Output of construction products, mainly rods
and bars, increased by 19% in 3Q 2011 due to the redistribution of
crude steel at EVRAZ Pueblo from the production of rails. Rail
production at EVRAZ Pueblo decreased by 6% due to a six day
scheduled rail mill shutdown in September. Flat-rolled production
decreased by 10% from 2Q 2011 due to a seasonal decrease in the
demand for commodity and non-armour plate as well as scheduled
seasonal shutdowns.
Europe
The production of crude steel at EVRAZ Vitkovice Steel decreased
by 18% compared to 2Q 2011 as one converter was temporarily idled
in August and September due to lack of orders as a result of a
downturn in the European markets and higher market prices of iron
ore and, consequently, higher price of hot metal supplies from
ArcelorMittal Ostrava. EVRAZ European mills produced 21% less
rolled products because of lower crude steel volumes and a seasonal
reduction of output at EVRAZ Palini e Bertoli rolling mill due to
summer holidays and maintenance works in August.
South Africa
In 3Q 2011, the production at EVRAZ Highveld Steel and Vanadium
was negatively affected by planned maintenance shutdowns and
overhaul of steelmaking and rolling production.
MINING
Iron Ore
Production of saleable iron ore products remained flat compared
to 2Q 2011. A decrease in production of sinter by 9% in Russia was
mainly attributable to the scheduled major repair of sintering
facilities at EVRAZ KGOK in 3Q 2011. Production of fine ore at the
Mapochs mine in South Africa increased by 23% over 2Q 2011 and by
36% over 3Q 2010 due to improved fines yield.
Coking Coal
Raw coking coal production at Yuzhkuzbassugol decreased by 30%
against 2Q 2011 and by 24% against 3Q 2010 mainly due to the
longwall repositioning at Abashevskya and Osinnikovskaya mines
Steam Coal
Raw steam coal and steam concentrate production increased by 16%
and by 125% respectively in 3Q 2011 compared to 2Q 2011 following
the start of mining of a new face at the Kusheyakovskaya mine.
VANADIUM
The Company's overall Production of primary vanadium (vanadium
slag) decreased by 8% as a result of lower production of pig iron
at EVRAZ Highveld in 3Q 2011 due to maintenance shutdown, as
described above.
* * *
Please note that the total volume of rolled steel products in
the table below excludes those re-rolled at other Group's mills.
These volumes are eliminated as intercompany sales for purposes of
Evraz's consolidated operating results.
PRODUCTION VOLUMES
3Q11/ 3Q 2011/
Product, '000 tonnes 3Q10, 2Q 2011,
unless otherwise stated 3Q 2011 3Q 2010 change* 2Q 2011 change*
Steel products
Coke (saleable) 306 363 (15.8)% 422 (27.6)%
Pig iron 2,865 2,944 (2.7)% 2,929 (2.2)%
Pig iron (saleable) 29 73 (59.5)% 56 (47.2)%
Crude steel 4,024 3,868 4.0% 4,225 (4.8)%
Rolled products, net of
re-rolled volumes 3,671 3,537 3.8% 3,780 (2.9)%
Semi-finished
products 767 805 (4.8)% 780 (1.8)%
Construction products 1,351 1,229 10.0% 1,299 4.0%
Railway products 517 448 15.6% 550 (5.9)%
Flat-rolled products 609 646 (5.8)% 730 (16.6)%
Tubular products 238 235 1.2% 216 10.1%
Other steel products 188 174 8.5% 204 (7.8)%
Russia
Coke (saleable) 128 124 3.1% 144 (11.5)%
Pig iron 2,540 2,499 1.6% 2,539 0%
Pig iron (saleable) 18 15 22.2% 15 20.9%
Crude steel 2,909 2,917 (0.3)% 3,026 (3.9)%
Rolled products, net of
re-rolled volumes 2,639 2,648 (0.3)% 2,720 (3.0)%
Semi-finished
products 915 1,107 (17.4)% 1,027 (10.9)%
Construction products 1,089 967 12.6% 1,034 5.3%
Railway products 396 353 12.2% 421 (5.8)%
Flat-rolled products 102 75 36.1% 81 26.2%
Other steel products 137 146 (6.2)% 158 (13.5)%
Ukraine
Coke (saleable) 178 239 (25.6)% 278 (35.9)%
Pig iron 209 231 (9.3)% 232 (9.7)%
Pig iron (saleable) 11 58 (80.5)% 41 (72.3)%
Crude steel 215 178 20.7% 203 6.0%
Rolled products 186 157 18.8% 169 10.4%
Semi-finished
products 47 44 7.1% 28 65.4%
Construction products 118 98 20.3% 115 2.0%
Other steel products 22 15 42.6% 25 (13.6)%
Europe
Crude steel 181 0 n/a 220 (17.8)%
Rolled products 270 299 (9.6)% 343 (21.2)%
Construction products 32 29 11.2% 35 (8.3)%
Flat-rolled products 216 266 (18.8)% 303 (28.6)%
Other steel products 22 4 472.9% 6 286.9%
North America
Crude steel 599 560 6.9% 602 (0.6)%
Rolled products, net of
re-rolled volumes 675 638 5.9% 674 0.2%
Construction products 81 93 (13.2)% 68 18.6%
Railway products 121 94 28.3% 129 (6.1)%
Flat-rolled products 236 215 9.6% 261 (9.8)%
Tubular products 238 235 1.2% 216 10.1%
South Africa
Pig iron 116 214 (45.9)% 158 (26.4)%
Crude steel 120 213 (43.7)% 173 (30.9)%
Rolled products 111 149 (25.6)% 159 (30.5)%
Semi-finished
products 16 7 113.7% 11 38.3%
Construction products 32 43 (24.7)% 47 (31.2)%
Flat-rolled products 55 90 (39.0)% 85 (35.8)%
Other steel products 8 9 (10.0)% 16 (50.1)%
Mining products
Iron ore
Lumpy ore (Ukraine) 724 570 27.1% 743 (2.5)%
Concentrate, saleable
(Russia) 1,734 1,458 18.9% 1,675 3.5%
Sinter (Russia) 1,009 937 7.7% 1,108 (8.9)%
Pellets (Russia) 1,465 1,424 2.9% 1,421 3.2%
Fines ore (South
Africa) 186 137 36.3% 151 23.4%
Lumpy ore (South
Africa) 317 455 (30.3)% 298 6.3%
Coal
Coking coal (mined) 1,237 1,628 (24.0)% 1,756 (29.5)%
Steam coal (mined) 889 961 (7.5)% 768 15.7%
Concentrate
(production) 1,391 1,585 (12.2)% 1,778 (21.8)%
Steam concentrate
(production) 338 514 (34.2)% 150 125.2%
Vanadium products
(tonnes of V) (1)
Vanadium in slag (gross
production) 4,804 4,956 (3.1)% 5,222 (8.0)%
Russia 3,201 3,112 2.9% 2,957 8.2%
South Africa 1,603 1,844 (13.1)% 2,265 (29.2)%
Vanadium in final
products (saleable)
Ferrovanadium 4,317 3,092 39.6% 4,183 3.2%
Produced at own
facilities 1,535 1,156 32.8% 1,605 (4.4)%
Processed at 3(rd)
parties'
facilities 2,782 1,936 43.7% 2,577 7.9%
Nitrovan(R) 819 647 26.6% 727 12.6%
Oxides, vanadium
aluminium and
chemicals 168 361 (53.5)% 358 (53.1)%
Equity investments
Raspadskaya (2)
Coking coal (mined) 1,212 1,108 9.4% 1,682 (28.0)%
*Numbers may not add to totals due to rounding. Percent changes
based on numbers prior to rounding.
1 Calculated in pure vanadium equivalent.
2 Evraz Group holds a 40% effective interest in the Raspadskaya
coal company.
AVERAGE SELLING PRICES
USD/tonne (ex works)
unless otherwise stated 3Q 2011 2Q 2011 3Q 2010
Steel products
Russia
Coke 222 254 200
Pig iron 494 467 421
Rolled products
Semi-finished products 537 565 433
Construction products 761 740 610
Railway products 914 926 725
Flat-rolled products 743 790 627
Other steel products 836 824 679
Ukraine
Coke 311 320 262
Pig iron 498 487 375
Rolled products
Semi-finished products 623 600 456
Construction products 706 695 580
Other steel products 1,103 1,083 979
Europe
Rolled products
Construction products 906 936 788
Flat-rolled products 945 993 791
North America
Rolled products
Construction products 944 921 771
Railway products 1,040 1,007 924
Flat-rolled products 1,188 1,212 944
Tubular products 1,540 1,454 1,446
South Africa
Rolled products
Semi-finished products 642 574 495
Construction products 838 896 705
Flat-rolled products 926 899 777
Other steel products 961 957 815
Mining products
Iron ore
Lumpy ore (Ukraine) 84 81 63
Concentrate, saleable
(Russia) 115 123 91
Sinter (Russia) 121 141 111
Pellets (Russia) 133 144 107
Fines ore (South Africa) 22 26 25
Coal
Coking coal 104 99 76
Steam coal 37 36 27
Concentrate 224 226 144
Steam concentrate 85 80 47
Vanadium products (USD/t
of V)
Vanadium in final products
Ferrovanadium 27,612 28,593 27,625
Nitrovan(R) 30,388 31,080 28,969
Oxides, vanadium aluminium
and chemicals 34,635 37,805 38,982
Notes:
Semi-finished products include slabs, billets, pipe blanks and
other semi-finished products.
Construction products include beams, channels, angles, rebars,
wire rods, wire, and other construction products.
Railway products include rails, wheels, tyres and other railway
products.
Flat-rolled products include commodity plate, specialty plate
and other flat products.
Tubular products include large diameter line pipes, ERW pipes
and casings, seamless pipes and other tubular products.
Other steel products include rounds, grinding balls, mine
uprights, strips etc. For Ukraine they also include railway
products, for Europe - slabs and crane rails; for South Africa -
rails.
###
For further information:
Media contact: Oleg Kuzmin VP, Corporate Communications +7 495
937 6871 media@evraz.com
Investor contact: Alexander Boreyko Director, Investor Relations
+7 495 232 1370
ir@evraz.com
Evraz Group S.A. (EVRAZ) is a vertically-integrated steel,
mining and vanadium business with operations in the Russian
Federation, Ukraine, the USA, Canada, the Czech Republic, Italy and
South Africa. In 2010, the Company produced 16.3 million tonnes of
crude steel and sold 15.5 million tonnes of steel rolled products.
The Company was ranked the 20(th) largest steel producer in the
world based on crude steel production of 16.3 million tonnes in
2010. EVRAZ's internal consumption of iron ore and coking coal is
covered by its mining operations. EVRAZ's consolidated revenues for
the year ended 31 December 2010 were US$13,394 million and
consolidated adjusted EBITDA amounted to US$2,350 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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