Key results Q3 2019
- Revenue down 8% q-o-q (-18% y/y) following a decline in sales (-6% QoQ) due to the ongoing capital repairs in the blast furnace and steelmaking of NLMK. In addition, revenue was affected by decline in steel prices in foreign markets.
- EBITDA was $654 million (-11% QoQ; -36% yoy) on the backdrop of faster decline in steel prices relative to the main metallurgical raw materials. EBITDA decreased to 25% (-1 PPT QoQ).
- Free cash flow was $249 million Reduction to the previous quarter by 3% QoQ due to increased investment in the implementation of Strategy 2022.
Comment Vice-President, Finance, NLMK Group Shamil Kurmashov:
"In Q3 the situation in the steel markets has been worsened by the weakening of demand, and, consequently, lower prices for steel, against the backdrop of slowing economic growth in the major overseas marketing regions of the company.
in addition, NLMK continued to make major repairs of the blast and Converter production, which by 2021 will increase steel output by 1 million tonnes to 14.2 million tonnes per year. Carrying out repairs has led to a decrease in sales of steel products of the company by 6% from the previous quarter.
as a result, NLMK Group's revenue decreased by 8% from the previous quarter. EBITDA decreased to $654 million with EBITDA margin of 25%, which is 1 percentage point less than in the past quarter, in connection with the narrowing of price spreads.
the Net debt/EBITDA is in the comfort range and is 0.59 x (0.39 x at end-Q2 2019) the Growth is attributed to maintaining a high level of dividend payments against the background of the investment strategy of the Group.
Free cash flow was $249 million of Positive free cash flow, preservation of Net debt/EBITDA below 1.0 x and the implementation of a dividend policy has allowed management to recommend to the Board of Directors of NLMK $300 million in dividends by results of the 3rd quarter."
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NLMK_Financial_Release - Q3 2019_RUS.pdf
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Presentation_NLMK_IFRS_Q3_2019.pdf
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financial_and_operating_data_3q_2019.xlsx
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Financial_statements_NLMK_IFRS_9m 2019_USD_RUS.pdf
