PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world's largest vertically integrated metals and mining companies, today reports its operating results for the third quarter and nine months of 2019.
HIGHLIGHTS (GROUP), Q3 2019
- The volume of pig iron production increased in Q3. 2019 by 7% and amounted to 2.46 mln. tonnes (Q2 2019: 2.30 mln tonnes), due to short-term repairs carried out at BF # 1, BF # 4 and BF # 5 in the previous quarter. Steel production declined 1% to 3.03 mt (Q2 2019: 3.06 mn tonnes) reflecting lower electric steel smelting following the sale of the Balakovo long-range mill in July 2019
- Consolidated sales of steel products remained at the level of the previous quarter The share of domestic sales remained at an all-time high of 67% (Q2 2019: 70%) due to continued favorable pricing environment.
- The share of high value-added products was 45% (Q2 2019: 46%), driven by lower sales of galvanized sheet, resin coated sheet and cold rolled steel due to short-term repairs on one of the pickling aggregates. The change in the product portfolio was also favorably influenced by a decrease in long steel sales on the one hand, and an increase in heavy plate sales on the other.
- Sales of coking coal concentrate increased 41% qoq on the back of a 42% qoq increase in rock mass production.
- Sales of iron ore pellets decreased by 15% qoq to 2.46 mt (Q2 2019: 2.90 mt), reflecting higher production of iron ore concentrate at Karelsky Okatysh.
- Sales of iron ore concentrate increased by 35% to 1.93mt (Q2 2019: 1.43mt) driven by increased production at Karelsky Okatysh.
HIGHLIGHTS (GROUP), 9 months. 2019
Pig iron production increased over 9 months. 2019 by 3% compared to the same period last year and amounted to 7.13 million tonnes (9 months 2018: 6.91 million tonnes) due to improved efficiency of repair campaigns and improved quality of raw materials. Steel production remained virtually unchanged at 9.13 Mt (9M 2018: 9.10 Mt), reflecting an increase in production capacity on the one hand, and a decrease in electric steel smelting following the sale of the Balakovo plant in Q3. 2019 with another.
Sales of coking coal concentrate increased 43% yoy on the back of increased coal production. Sales volume of iron ore concentrate for 9 months 2019 reached 4.66 million tonnes (9M 2018: 4.08 million tonnes), which reflects the growth in production at Karelskyokatysh.
The share of high value-added products remained high at 45%, mainly reflecting higher sales of galvanized and pre-painted sheets following the launch of new capacities that reached full capacity in Q1 2019
PRODUCTION AND SALES KEY INDICATORS
CONSOLIDATED SALES (EXCLUDING DOMESTIC SALES)
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[b] Full version of operational results is available here.
