TIDMEVR
RNS Number : 3638X
Evraz Plc
29 April 2019
EVRAZ Q1 2019 TRADING UPDATE
29 April 2019 - EVRAZ plc (LSE: EVR; "EVRAZ" or the "Group")
today released its trading update for the first quarter of
2019.
Q1 2019 vs Q4 2018 HIGHLIGHTS
-- In Q1 2019, EVRAZ' consolidated crude steel output climbed by
12.4% QoQ to 3.5 million tonnes, primarily as a result of higher
pig iron production following the completion of capital repairs at
EVRAZ ZSMK's blast furnace no. 3 at the end of Q4 2018.
-- Total steel product sales rose by 8.4% QoQ, driven by higher
crude steel production. Sales of semi-finished products surged by
29.0%, primarily due to increased pig iron and crude steel output.
This was partly offset by a 2.7% reduction in sales of finished
products, which was mostly attributable to lower sales of
construction products in Russia and tubular and railway products in
North America.
-- Production of raw coking coal remained flat QoQ. In Q1 2019,
external sales volumes of coking coal products declined by 4.1% as
coking coal concentrate sales subsided from the elevated levels
during the longwall repositioning at Yuzhkuzbassugol's Uskovskaya
mine in Q4 2018.
-- Sales of vanadium products fell by 5.3% QoQ, mainly due to a
sharp decline of demand from the automotive industry and high stock
levels at steel makers, accumulated during a period of sharp FeV
price increase.
Product, '000 tonnes Q1 Q4 Q1 2019/ Q4 2018, change Q1 Q1 2019/ Q1 2018, change
2019 2018 2018
--------------------------------------- ------ ------ ------------------------- ------- -------------------------
Total crude steel production 3,488 3,102 12.4% 3,351 4.1%
Russia 2,986 2,599 14.9% 2,730 9.4%
Ukraine 0 0 n/a 154 n/a
North America 502 503 -0.2% 467 7.5%
Total raw coking coal mined 6,844 6,853 -0.1% 5,969 14.7%
Total coking coal concentrate
production 3,684 4,221 -12.7% 4,154 -11.3%
Iron ore products production 3,636 3,367 8.0% 3,431 6.0%
Total sales of steel products * 3,187 2,939 8.4% 3,068 3.9%
Semi-finished products 1,335 1,035 29.0% 1,303 2.5%
Finished products 1,852 1,904 -2.7% 1,765 4.9%
Total sales of third-party steel
products 180 228 -21.0% 170 5.9%
Sales of coking coal products 2,656 2,770 -4.1% 2,713 -2.1%
Sales of iron ore products 464 460 0.9% 585 -20.7%
Sales of vanadium final products ** 2,518 2,659 -5.3% 3,108 -19.0%
--------------------------------------- ------ ------ ------------------------- ------- -------------------------
Note. Numbers in this table and the tables below may not add up
to totals due to rounding.
* Q1 2019 production and sales volumes of EVRAZ North America
are preliminary
** in tonnes of pure vanadium
CONFERENCE CALL DETAILS
A conference call to discuss the trading update will be held on
Monday, 29 April 2019, at:
-- 2 pm (London time)
-- 4 pm (Moscow time)
-- 9 am (New York time)
Key speakers:
-- Alexey Ivanov, Senior Vice President, Commerce and Business development,
-- Alexander Erenburg, Vice President, Head of the Vanadium Division
-- Sergey Stepanov, Vice President, Head of the Coal Division
-- Alexander Vasiliev, Chief Financial Officer, EVRAZ North America
To join the call, please dial:
+ 44 (0)330 336 UK
9411
+7 495 646 9190 Russia
+1 929 477 0448 US
Conference ID: 3551607
To avoid any technical inconvenience, it is recommended that
participants dial in 10 minutes before the start of the call.
The Q1 2019 Trading update presentation will be available on the
Group's website, www.evraz.com, on Monday, 29 April 2019, at the
following link:
http://www.evraz.com/investors/presentations/
FORWARD-LOOKING STATEMENTS
This document contains "forward-looking statements", which
include all statements other than statements of historical facts,
including, without limitation, any statements preceded by, followed
by or that include the words "targets", "believes", "expects",
"aims", "intends", "will", "may", "anticipates", "would", "could"
or similar expressions or the negative thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond the Group's
control that could cause the actual results, performance or
achievements of the Group to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements, including, among others, the
achievement of anticipated levels of profitability, growth, cost
and synergy of recent acquisitions, the impact of competitive
pricing, the ability to obtain necessary regulatory approvals and
licenses, the impact of developments in the Russian economic,
political and legal environment, volatility in stock markets or in
the price of the Group's shares or GDRs, financial risk management
and the impact of general business and global economic conditions.
Such forward-looking statements are based on numerous assumptions
regarding the Group's present and future business strategies and
the environment in which the Group will operate in the future. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. These
forward-looking statements speak only as at the date as of which
they are made, and each of EVRAZ and the Group expressly disclaims
any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statements contained herein to
reflect any change in EVRAZ' or the Group's expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statements are based. Neither the Group, nor any
of its agents, employees or advisors intends or has any duty or
obligation to supplement, amend, update or revise any of the
forward-looking statements contained in this document.
STEEL SEGMENT
Total production volumes (RUSSIA, UKRAINE, KAZAKHSTAN and
EUROPE)
Product, '000 tonnes Q1 2019 Q4 2018 Q1 2019/ Q4 2018, change Q1 2018 Q1 2019/ Q1 2018, change
---------------------------------- -------- -------- ------------------------- -------- -------------------------
Pig iron production 2,712 2,348 15.5% 2,571 5.5%
EVRAZ ZSMK 1,471 1,090 35.0% 1,397 5.3%
EVRAZ NTMK 1,241 1,258 -1.4% 1,020 21.7%
EVRAZ DMZ 0 0 n/a 153 - n/a
Crude steel production 2,986 2,599 14.9% 2,884 3.5%
EVRAZ ZSMK 1,895 1,494 26.8% 1,790 5.9%
EVRAZ NTMK 1,091 1,105 -1.3% 940 16.1%
EVRAZ DMZ 0 0 n/a 154 n/a
Total steel products production,
net of re-rolled
volume 2,622 2,354 11.4% 2,549 2.9%
EVRAZ ZSMK 1,686 1,376 22.5% 1,608 4.9%
EVRAZ NTMK 794 845 -6.0% 679 16.9%
EVRAZ DMZ 0 0 n/a 132 -100%
EVRAZ Palini e Bertoli 97 82 18.3% 91 6.6%
EVRAZ Caspian Steel 45 51 -11.8% 39 15.4%
Iron ore products production 3,636 3,367 8.0% 3,431 6.0%
Pellets (EVRAZ KGOK) 1,643 1,571 4.6% 1,651 -0.5%
Sinter (EVRAZ KGOK) 898 908 -1.1% 831 8.1%
Concentrate saleable (EVRAZ
KGOK, Evrazruda) 1,095 888 23.3% 949 15.4%
Coking coal concentrate
production 454 519 -12.5% 522 -13.0%
From own raw coal* 256 294 -12.9% 282 -9.2%
From third-party raw coal 198 225 -12.0% 240 -17.5%
Gross vanadium slag production** 4,446 4,377 1.6% 4,020 10.6%
---------------------------------- -------- -------- ------------------------- -------- -------------------------
Note. Numbers in this table and the tables below may not add up
to totals due to rounding.
* from Coal segment
** in tonnes of pure vanadium
In Q1 2019, pig iron output at EVRAZ' Russian mills grew by
15.5% QoQ to 2.7 million tonnes following the completion of capital
repairs at EVRAZ ZSMK's blast furnace no. 3.
Crude steel output climbed by 14.9% QoQ to 3.0 million tonnes
following an increase in pig iron output.
Iron ore products' output rose by 8% QoQ to 3.6 million tonnes
mainly due to improved performance of Evrazruda and increased
demand for own-produced iron ore at EVRAZ ZSMK after the completion
of capital repairs at blast furnace no. 3
Total sales volumes (RUSSIA, UKRAINE, KAZAKHSTAN and EUROPE)
Product, '000 tonnes Q1 2019 Q4 2018 Q1 2019/ Q1 2018 Q1 2019/ Q1 2018, change
Q4 2018, change
------------------------------------------ -------- -------- ----------------- -------- -------------------------
Coke 65 251 -74.1% 110 -40.9%
Steel products, external sales 2,583 2,323 11.2% 2,586 -0.1%
Semi-finished products 1,279 1,003 27.5% 1,303 -1.8%
Slabs 482 387 24.5% 422 14.2%
Billets 646 504 28.2% 763 -15.3%
Other steel products * 151 112 34.8% 119 26.9%
Finished products 1,304 1,320 -1.2% 1,283 1.6%
Construction products 729 771 -5.4% 735 -0.8%
Railway products 343 334 2.7% 308 11.4%
Flat products 91 84 8.3% 94 -3.2%
Other steel products 141 130 8.5% 146 -3.4%
Steel products, inter-segment sales 186 151 23.2% 129 44.2%
Third-party steel products, external
sales 180 228 -21.1% 170 5.9%
Iron ore products, external sales 464 460 0.9% 585 -20.7%
Pellets 464 458 1.3% 585 -20.7%
Other 0 2 -100.0% 0 n/a
Sales of vanadium final products** 2,518 2,659 -5.3% 3,108 -19.0%
------------------------------------------ -------- -------- ----------------- -------- -------------------------
Note. Numbers in this table and the tables below may not add to
totals due to rounding.
* includes tonnes of pig iron
** in tonnes of pure vanadium
In Q1 2019, external sales of steel products rose by 11.2% QoQ,
mostly due to higher crude steel production volumes. Sales of
semi-finished products jumped by 27.5%, mostly due to the
completion of capital repairs at EVRAZ ZSMK's blast furnace no. 3,
which affected sales in Q4 2018.
Sales of finished products dropped by 1.2% QoQ, mainly driven by
lower sales of construction products, which were down 5.4% QoQ due
to a decrease of market demand in retail in Q1 2019 amid seasonal
slowdown of construction works in Russia.
Sales of vanadium products fell by 5.3% QoQ, mainly due to a
sharp decline of demand from the automotive industry and high stock
levels at steel makers, accumulated during a period of sharp FeV
price increase.
Cash cost, US$/t Q1 Q4 Q1 2019 / Q4 2018, change Q1 Q1 2019 / Q1 2018, change
2019 2018 2018
------------------------------------- ------ ------ -------------------------- ------- --------------------------
Slab cash cost vertically integrated 223 195 14.4 % 256 -12.9 %
Iron ore products (Fe 62%) 37 42 -11.9 % 38 -2.6 %
------------------------------------- ------ ------ -------------------------- ------- --------------------------
Average selling prices
US$/tonne (ex works) Q1 Q4 Q1
2019 2018 2018
------------------------------------------------------------- ------ ------- ------
Coke 223 202 264
Steel products 481 504 544
Semi-finished products* 381 424 439
Construction products 522 535 618
Railway products 743 662 720
Other steel products 593 627 628
Pellets 75 66 61
Metal Bulletin Ferro-Vanadium basis 78% min, free DDP,
consumer plant, 1st grade Western Europe** 73.33 108.60 61.90
Ryan's Notes N.A. FeV 80% min, US ex-warehouse, duty paid** 87.93 118.65 63.32
------------------------------------------------------------- ------ ------- ------
* includes prices for pig iron
** US$/kgV
In Q2 2019, pig iron production volumes are expected to remain
flat.
STEEL, NORTH AMERICA SEGMENT
Production and sales volumes
Product, '000 tonnes Q1 Q4 2018 Q1 2019/ Q1 2018 Q1 2019/ Q1 2018, change
2019 Q4 2018, change
-------------------------------------------- ------ -------- ----------------- -------- -------------------------
Crude steel 502 503 -0.2% 467 7.5%
EVRAZ U.S. mills 234 233 0.4% 228 2.6%
EVRAZ Canadian mills 268 270 -0.7% 239 12.1%
Total steel products production, net of
re-rolled volume 524 575 -8.9% 515 1.7%
EVRAZ U.S. mills 350 368 -4.9% 342 2.3%
EVRAZ Canadian mills 175 206 -15.0% 173 1.2%
Sales of steel products 548 585 -6.3% 482 13.7%
Semi-finished products 56 32 75.0% 0 n/a
Construction products 70 74 -5.4% 69 1.4%
Railway products 99 117 -15.4% 96 3.1%
Flat-rolled products 132 126 4.8% 142 -7.0%
Tubular products 191 236 -19.1% 175 9.1%
-------------------------------------------- ------ -------- ----------------- -------- -------------------------
* Q1 2019 production and sales volumes are preliminary
In Q1 2019, total output of steel products dropped by 8.9% QoQ
due to a reduction of 15.0% QoQ at EVRAZ Regina. The latter was
caused by lower line pipe production volumes, which was due to
lower US sales driven by US tariffs and duties, as well as lower
LDP production due to increased changeover time as mills switched
through multiple orders.
Total output of steel products at EVRAZ Pueblo fell by 11.0% QoQ
as output of construction products declined amid lower demand for
concrete reinforcing bar, which was driven by late start of
construction season and reduced railway product output due to
unplanned rail mill downtime in March 2019.
Sales of construction products decreased by 5.4% QoQ due to
lower demand for concrete reinforcing bar, as inclement weather
caused a slowdown of construction activity.
Railway product sales slid by 15.4% QoQ, driven by unplanned
rail mill downtime in March 2019 at EVRAZ Pueblo, while market
fundamentals remain strong.
Sales of flat-rolled products jumped by 4.8% QoQ as demand
recovered in Q1 2019, after customers reduced inventory in Q4 2018.
The sales growth was also impacted by a planned maintenance outage
in Q4 2018 and a rail car shortage at the year-end that limited
shipments.
Sales of tubular products dropped by 19.1% QoQ due to the
temporary shutdown of the coating operation, which impacted line
pipe shipments, as well as to lower sales of oil country tubular
goods (OCTG) due to declining drilling activity in Western
Canada.
Prices for tubular products were up during Q1 2019, reflecting
higher prices for prevailing scrap and other inputs, as well as
improved demand. Prices for construction products went down in Q1
2019 due to a seasonal reduction in market demand and surplus
domestic capacity in the US. Prices for flat-rolled products were
little changed compared with Q4 2018.
Average selling prices
US$/tonne (ex works) Q1 Q4 Q1
2019 2018 2018
----------------------- ------ ------ ------
Construction products 840 889 705
Flat-rolled products 1,055 1,074 781
Tubular products 1,400 1,267 1,243
----------------------- ------ ------ ------
In Q2 2019, crude steel output is expected to drop by 2-5% QoQ
amid a reduction in tubular volumes due to the seasonal decline on
Canada's OCTG market. Flat-rolled products are expected to climb by
5-7%, driven by customer production schedules. Construction
products are expected to grow by 3-5% and railway products are
expected to recover by 5-10% following the unplanned downtime in
March 2019.
COAL SEGMENT
Production volumes
Product, '000 tonnes Q1 Q4 Q1 2019/ Q4 2018, change Q1 2018 Q1 2019/ Q1 2018, change
2019 2018
-------------------------------------- ------ ------ ------------------------- -------- -------------------------
Raw coking coal (mined) 6,844 6,853 -0.1% 5,969 14.7%
Yuzhkuzbassugol 2,606 2,188 19.1% 2,720 -4.2%
Raspadskaya 3,916 4,376 -10.5% 3,008 30.2%
Mezhegeyugol 322 289 11.4% 241 33.6%
Coking coal concentrate (production) 3,229 3,702 -12.8% 3,631 -11.1%
Produced at Yuzhkuzbassugol coal
washing plants 1,433 1,428 0.4% 1,770 -19.0%
Produced at the Raspadskaya coal
washing plant 1,796 2,274 -21.0% 1,861 -3.5%
-------------------------------------- ------ ------ ------------------------- -------- -------------------------
In Q1 2019, overall raw coking coal output was flat QoQ,
primarily due to higher production at Yuzhkuzbassugol's mines
following the longwall move at the Uskovskaya mine in Q4 2018.
This was partly offset by lower production volumes at
Raspadskaya' mines after the decision was taken to optimise
production and reduce spending on contractor services at Razrez
Raspadsky given the high inventories of raw coal that built up in
Q4 2018 amid record mining volumes of GZh-grade coal.
Output of coking coal concentrate fell by 12.8%, primarily due
to high level of accumulated inventories at the end of Q4 2018 and
in Q1 2019.
.
Sales volumes
Product, '000 tonnes Q1 Q4 Q1 2019/ Q4 2018, change Q1 Q1 2019/ Q1 2018, change
2019 2018 2018
--------------------------- ------ ------ ------------------------- ------ -------------------------
External sales 2,656 2,770 -4.1% 2,713 -2.1%
Raw coking coal 497 313 58.5% 323 53.9%
Coking coal concentrate 2,160 2,457 -12.1% 2,391 -9.7%
Intersegment sales 1,519 1,472 3.2% 1,443 5.3%
Raw coking coal 396 409 -3.1% 396 0.0%
Coking coal concentrate 1,123 1,063 5.7% 1,047 7.3%
--------------------------- ------ ------ ------------------------- ------ -------------------------
In Q1 2019, external sales volumes of coking coal products
dropped by 4.1% as coking coal concentrate sales subsided from the
elevated levels during the longwall repositioning at
Yuzhkuzbassugol's Uskovskaya mine in Q4 2018. A deficit of K-grade
coal caused by the switch to longwall operations at the
Raspadskaya-Koksovaya mine also contributed to the QoQ fall in coal
concentrate sales.
Cash cost, US$/t Q1 Q4 Q1 2019 / Q4 2018, change Q1 Q1 2019 / Q1 2018, change
2019 2018 2018
------------------------- ------ ------ -------------------------- ------- --------------------------
Coking coal concentrate 48 46 4.3% 45 6.7%
------------------------- ------ ------ -------------------------- ------- --------------------------
Average selling prices
Q1 Q4 Q1
US$/tonne (ex works) 2019 2018 2018
------------------------- ------ ------ ------
Raw coking coal 57 67 75
Coking coal concentrate 117 113 135
------------------------- ------ ------ ------
In Q1 2019, coking coal selling prices rose in line with global
benchmarks.
In Q2 2019, raw coal production is expected to increase QoQ
after the completion of the Alardinskaya mine's transfer and the
Raspadskaya-Koksovaya mine's switch to longwall mining.
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. They also include railway products for
Ukraine.
###
For further information:
Media Relations:
London: +44 207 832 8998 Moscow: +7 495 937 6871
media@evraz.com
Investor Relations:
London: +44 207 832 8990 Moscow: +7 495 232 1370
ir@evraz.com
EVRAZ is a vertically integrated steel, mining and vanadium
business with operations in the Russian Federation, Kazakhstan,
USA, Canada, Czech Republic and Italy. EVRAZ is among the top steel
producers in the world based on crude steel production of 14
million tonnes in 2018. A significant portion of the company's
internal consumption of iron ore and coking coal is covered by its
mining operations. The company's consolidated revenues for the year
ended 31 December 2018 were US$12,836 million, and consolidated
EBITDA amounted to US$3,777 million.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTPGURGCUPBUCB
(END) Dow Jones Newswires
April 29, 2019 02:02 ET (06:02 GMT)
Evraz (LSE:EVR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Evraz (LSE:EVR)
Historical Stock Chart
From Sep 2023 to Sep 2024
