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Operational results of Severstal for the 2nd quarter and the first half of 2020

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PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the largest in the world.
a vertically integrated steel and mining companies,
reported today its operating results for the second quarter and first
half of 2020.


HIGHLIGHTS (GROUP), Q2-2020


  • production of cast iron decreased by 3% over the previous quarter and
    made up 2.33 million tons (1Q 2020: 2.41 million tons) in connection with short-term
    maintenance works at BF #1, #4 and #5.

  • steel Production decreased by 2% and amounted to 2.81 million tons (1Q 2020:
    2.85 million tons) due to reduction in iron production.

  • Consolidated sales of steel products decreased by 7% compared to the previous
    quarter and amounted in Q2 2020 2.55 million tons (1Q 2020: 2.75 million tons)
    because of the decline in steel production and the increased proportion of export sales from
    a longer implementation period. Also increased the volume of warehouse stocks of
    the end of the 2nd quarter of 2020.

  • the Share of export sales of steel products remained at a high level 44%
    (1Q 2020: 45%) in connection with a reduction in domestic consumption due to the introduction
    of quarantine measures in Russia.

  • the Share of products with high added value accounted for 43% (1Q 2020:
    42%), which was due to an increase in sales of sheet for
    a polymer coating and a decrease in sales of semi-finished products and hot rolled
    sheet.

  • sales of coking coal concentrate at Vorkutaugol increased in
    Q2 2020 by 34% compared to the previous quarter to 1.28 million tons as a result of
    the planned growth in production.

  • sales of iron ore pellets declined by 15% over the previous quarter
    and amounted to 2.53 million tons (1Q 2020: 2.97 million tons). Due to the reduction
    price premium for pellets in Q2 2020, Karelsky Okatysh increased sales
    iron ore concentrate that has allowed to provide a higher level
    end-to-end efficiency internal consumption at Cherepovets steel mill.

  • sales of iron ore concentrate increased by 30% compared to the previous
    quarter and amounted to 1.90 mln. tonnes (Q1 2020: 1.47 million tonnes), which was
    caused by increased production at Karelsky Okatysh and recovery
    production volumes on the "Alcon" in Q1 2020.

HIGHLIGHTS (GROUP), and 6 months. 2020


  • production of cast iron increased in the first half of 2020 2%
    about 6 months. 2019 and amounted to 4.74 million tonnes (of 6 months. 2019: 4.67 million
    tonnes) as a result of reduced planning time short-term repairs and
    efficiency. Steel production fell to 5.66 million tonnes
    (6 mos. 2019: 6.10 million tons) against the background of sales of long products mill Balakovo in 2019
    g.

  • sales of iron ore concentrate increased by 24% compared to
    last year and amounted to 3.37 million tons (of 6 months. 2019: 2.73 million tons), the main
    manner reflecting the growth of production volumes at the Yakovlevsky mine and Karel "
    Pellet".

  • sales of coking coal concentrate at Vorkutaugol increased by
    12% compared to the same period of the previous year due to the planned
    the increase in volumes of coal mining.

Full press release
link.


  • the Share of products with high added value decreased in the first
    half of the year 2020 by 2 percentage points to 43%, reflecting the increase in sales
    semi-finished products and hot-rolled sheet.

  • Average selling prices of steel products decreased in the first half
    2020 from 9% to 23%, depending on product category, following world
    trends.

MAIN INDICATORS of PRODUCTION AND SALES


[ceter]Operational results of Severstal for the 2nd quarter and the first half of 2020 goda[/ceter]


[ceter]Operational results of Severstal for the 2nd quarter and the first half of 2020[/ceter]


[ceter]Operational results of Severstal for the 2nd quarter and the first half of 2020[/ceter]



CONSOLIDATED SALES (excluding SALES INSIDE the
COMPANY)




RESULTS IN the DIRECTION of ESG (ENVIRONMENT, SOCIAL SPHERE,
CORPORATE GOVERNANCE), HIGHLIGHTS of the SECOND QUARTER AND the FIRST
half of 2020


  • the Main priority in a situation of a pandemic
    coronavirus COVID-19 was the minimization of risks to the health of employees.
    Preventive and protective measures include remote work for part of the staff,
    the restriction of movement on the territory, disinfection of premises, checking
    temperature employees upon arrival at work. Followed by more
    purchase and issuance of personal protective equipment – masks, respirators, goggles,
    sanitizers for the hands.

  • In the first half of 2020, the LTIFR rate has increased by 20% compared to
    6 months. 2019 and amounted to 0.85 (6 months. 2019: 0,71). The number of injuries
    with the contractors declined from 22 for 6 months. 2019 to 16 in the second half of 2020
    year.

  • Q1 2020 committed 3 fatal injuries with their own staff and
    1 with the contractor. In Q2 2020 fatal injuries had been committed. Of them
    2 workers died as a result of gas-dynamic phenomena of methane
    in the mine "Vorkuta". We're currently investigating each of these cases,
    to prevent this in the future.

  • In the first half of 2020 emissions of operations
    "Severstal Russian Steel" has not changed in comparison with
    the previous period and reached 142,700 tons (of 6 months. 2019: 142,500 tons), which
    on the one hand, associated with an increase in the sulphur content of Olenegorsky
    the concentrate, which is 2.8 times, and on the other – with the sale of long product mill Balakovo in 2019
    year. Specific emissions into the atmosphere increased in the first half
    2020 by 8% compared to the previous year to 24.9 kg/ton of liquid
    steel.

  • On the "Severstal Resurs" in the first half of 2020 the volume of
    emissions decreased by 1% compared to the previous
    period and totaled 99,500 tons (of 6 months. 2019: 100,400 tons).

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