Home / Press Releases / Operational results of Severstal for the 4th quarter and twelve months of 2019

Operational results of Severstal for the 4th quarter and twelve months of 2019

Press Releases

PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world's largest vertically integrated steel and mining companies, reported today its operating results for the fourth quarter and twelve months of 2019.


HIGHLIGHTS (GROUP), Q4 2019


    • production of cast iron dropped by 4% and amounted to 2.36 million tons (Q3 2019: 2.46 million tons) due to short-term work on the furnaces in the 4th quarter 2019. Steel production declined by 10% and amounted to 2.71 million tonnes (Q3 2019: 3.03 million tons) in connection with short-term work on the Converter and arc-furnace capacity, and the reduction in output of steel in Q4 2019 after the sale of the long products mill Balakovo in the previous quarter.

      • Consolidated sales of steel products decreased by 6% compared to the previous quarter, to 2.65 million tons (Q3 2019: 2.83 mln tonnes). The company increased the share of export sales of steel products up to 41% (Q3 2019: 33%) due to the seasonal decline in domestic consumption.

        • the Share of products with high added value remained at the level of 45% (Q3 2019: 45%), due to higher sales volume of rolled plates and colour-coated sheet, as well as lower sales of rolled products and hot-rolled.

          • sales of coking coal concentrate at Vorkutaugol declined by 1% over the previous quarter due to the reduction in production volumes of rock mass to the previous quarter.

            • sales of iron ore pellets increased by 14% over the previous quarter and amounted to 2.81 mln. tonnes (Q3 2019: 2.46 million tons), which was caused by the increase in pellet production at Karelsky Okatysh to the previous quarter. Sales of iron ore concentrate decreased by 17% and reached 1.60 million tons (Q3 2019: 1.93 million tons), due to lower volumes of iron ore concentrate at Karelsky Okatysh.

            HIGHLIGHTS (GROUP), 2019


            production of cast iron increased by 4% in 2019 and amounted to 9.49 million tons (2018: 9.15 million tons), due to increase of efficiency of repair works and improvement of the quality of raw materials. Steel production in 2019 decreased by 2% to 11.85 million tons (2018: 12.04 million tons), reflecting a higher level of productivity of equipment, offset by lower volumes of steel in the second half of 2019, after the sale of long product mill Balakovo.


            sales of coking coal concentrate at Vorkutaugol increased by 38% on the previous year due to the planned increase in production volumes.


            sales of iron ore concentrate increased by 14% over the previous year and amounted to 6.26 million tons (2018: 5.51 million tons), mainly reflecting growth in production at Karelsky Okatysh and Yakovlevsky mine.


            the Share of products with high added value remained at a high level at 45%, which was driven by increased sales of steel plate and galvanized steel and rolled products with polymer coating in connection with the launch of new capacity that reached the full load at the beginning of 2019.


            In 2019, the share of sales on domestic market reached 65% (2018: 61%) amid more favorable market conditions of the Russian market.


            MAIN INDICATORS of PRODUCTION AND SALES


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            CONSOLIDATED SALES (excluding SALES WITHIN the COMPANY)


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            RESULTS IN the DIRECTION of ESG (ENVIRONMENT, SOCIAL, CORPORATE GOVERNANCE),


            HIGHLIGHTS of the FOURTH QUARTER AND TWELVE MONTHS 2019


              • the Safety of our employees and contractors is of paramount importance for Severstal. We are committed to completely eliminate fatal injuries in the workplace.

                • In 2019, the LTIFR decreased by 36% and amounted to 0.61 (2018: 0.95). The result achieved better goals for 2019 0.84 27%. The total number of injuries decreased from 81 in 2018 to 55 in 2019.

                  • However, unfortunately, in the 2nd half of 2019 admitted 2 accidents with a fatal outcome, with its own staff and 1 contractor. We're currently investigating each of these cases, to prevent this in the future.

                    • the Level of personnel involvement in safety issues of production increased, as evidenced by the results of System audits to prevent accidents: "the Russian Steel" and "Severstal-metiz" the goal was exceeded, reaching figures 3.9 and 2.8 points out of 5 respectively. Vorkutaugol also meet the goal in 3.0 points.















                    health and safety


                    Q4 2019


                    Q3 2019


                    Rev. %


                    2019


                    2018


                    ISM., %


                    LTIFR*


                    0.60


                    0.45


                    33%


                    0.61


                    0.95


                    (36%)


                      • In 2019, the release of contaminants at the enterprises "Severstal Russian Steel" decreased by 8% compared to the 2018 and amounted to 277,492 tons (2018: 301,695 tons). Specific emissions into the atmosphere decreased by 7% to 23.4 kg/ton of steel (2018: 25.1 kg/tonne of steel) that is associated with a reduction in specific consumption of coke breeze in sintering of agglomerate due to the reconstruction of the node of solid fuel in AGTS-3. The decrease in gross emissions are also attributable to the sale of long product mill Balakovo in 2019 and accounting of emissions at the company for only 6 months. 2019, leading to a decrease of 8.3 thousand tons.

                        • At the enterprises "Severstal Resurs" in 2019, the emissions of pollutants decreased relative to the previous period level of 3% and amounted to 213,291 tons (2018: 220,016 tons). The decrease in emissions was mainly due to the reduction of emissions at Vorkutaugol, where it was disposed of greater quantities of methane in boiler houses of mines.



























                        environment**


                        Q4 2019


                        3Q 2019


                        Rev. %


                        2019


                        2018***


                        ISM., %


                        the Number of emissions of pollutants, thousand tonnes (Severstal Russian Stall)


                        61.8


                        73.2


                        (16%)


                        277.5


                        301.7


                        (8%)


                        the Number of emissions of pollutants, thousand tonnes (Severstal Resurs)


                        54.4


                        58.7


                        (7%)


                        213.3


                        220.0


                        (3%)


                        The specific emissions of contaminating substances, kg/t stali****


                        23.8


                        24.2


                        (2%)


                        23.4


                        25.1


                        (7%)

                        notes to this section:


                        * LTIFR (Lost Time Ijury Frequecy Rate) - frequency rate of injuries with temporary disability Severstal, the number of injuries with temporary disability per million hours worked.


                        ** emission Data is calculated in accordance with the legislation of the Russian Federation and are sent annually to the appropriate state authorities.


                        *** the Value for 2018 is slightly adjusted to Refine the methodology and expand the boundaries of accounting by "Karelian Okatysh" and "Alcon".


                        **** steel Production Cherepovets steel mill (2019) and Varietal plant Balakovo (January - July 2019).

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