TIDMEVR
RNS Number : 9171J
Evraz Plc
16 April 2020
Update on COVID-19
16 April 2020 - EVRAZ plc ("EVRAZ or the "Group") today
announces an update on the impact of COVID-19 on its business .
Group focus and priorities
The Group is closely monitoring the development of the COVID-19
pandemic and its impact on our employees, our operations and the
broader stakeholder base. EVRAZ's immediate focus is on doing
everything in its power to protect the lives and health of our
employees and minimise the negative impact on our facilities and
the communities in which we operate.
During and since March 2020, in response to the coronavirus
pandemic the Group has introduced additional safety measures to
protect its people and ensure continued operations.
These include:
-- Significant reduction of domestic and cancellation of overseas business travel;
-- Two-week isolation, with full salary, for all employees
returning from trips abroad, either personal or work-related;
-- Enabling remote working, provision of additional personal
protection equipment for employees who must come to work, including
eye protectors, respirators and gloves;
-- Installation of thermal imaging devices and pyrometers at the
entrances to our facilities to monitor people's temperatures;
-- Elimination to the extent possible of large gatherings (with
social distancing when they must take place), and cancellation of
all major corporate, sporting and entertainment events;
-- Increase of supplies of antiseptic and disinfectant products
in communal areas, regular sanitation of facilities and
transport;
-- Campaigns to raise awareness among employees and contractors
on behavioural features , social distancing and personal
protection.
The Group is monitoring the spread of coronavirus and working
with healthcare facilities and insurance organisations to take
proactive decisions aimed at safeguarding its employees and their
families. Currently there are no confirmed COVID-19 cases in
EVRAZ.
Update on our operations and outlook
The Group remains closely focused on its operations, including
logistics, supply and technological processes. At present, EVRAZ is
facing no significant issues with the production or supply of raw
materials and other goods. Shipments continue, and raw material
deliveries to enterprises are stable.
However, in the near term, we expect domestic steel demand to
fall due to the significant economic down-turn that the
restrictions imposed due to COVID-2019 are causing worldwide,
including in Russia. This will, no doubt, affect firstly our
construction products sales and then our railway products sales, to
a slightly lesser extent.
We expect the impact on exports to be less significant. This is
due to the recent rouble devaluation and EVRAZ's ability to
redirect steel from domestic sales to export markets.
While the impact on the Group has been limited so far, we are
likely to experience challenges in the near term. While our
enterprises have been operating at full capacity, the situation is
likely to be more complex in May and June. In the light of this,
EVRAZ is working on a comprehensive package of optimisation
measures that we expect to partially mitigate these negative
effects.
Our financial position
The Group remains well capitalised with a strong liquidity
cushion.
As at 31 December 2019, our net debt amounted to US$3,445
million. This reflected cash of US$1,423 million. Short-term loans
and the current portion of long-term loans stood at US$140 million.
Total scheduled debt maturities during 2020 will amount to no more
thanUS$52 million.
In March 2020, EVRAZ paid interim dividends to its shareholders
amounting to US$580.8 million, US$0.40 per share.
In addition, also in March 2020, EVRAZ signed a US$750 million
5-year committed syndicated unsecured credit facility. This
facility was arranged and fully underwritten by a group of 10
international banks and is available for drawing until 18 March
2021. The proceeds of the facility will be used for general
corporate purposes, including refinancing of the public debt
maturities upcoming in Q1 2021.
In March and April, the Group also added RUB20 billion to its
cash cushion by utilisation of its committed and
uncommitted credit lines in Russia, due 2023.
The first sizeable maturities are due in Q1 2021 which should be
comfortably covered by our existing cash
balances and committed credit facilities.
Despite Covid-19 related challenges and market downturns, EVRAZ
remains committed to its long-term strategic goals, sustainability
principles and high standards of corporate governance and
control.
For more information, please contact :
Investor Relations
Tel : +7 495 232 1370
Email: ir @ evraz . com
Media Relations
Tel : +7 495 937 6871
Email: media @ evraz . com
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END
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