Metalloinvest (the "Company"), a leading global iron ore and hot briquetted iron (HBI) manufacturer and supplier and one of the regional high-quality steel producers, today announces interim unaudited financial results under IFRS for the 3rd quarter and 9 months ended September 30, 2020.
Management comments
Alexey Voronov, Deputy General Director for Finance and Economics, Metalloinvest Management Company ", Commented:
" The Company's nine-month results were expected to come under pressure from the deteriorating economic activity in the global market, which primarily affects the structure of sales markets and sales prices, given the increased transportation costs. At the same time, according to the results of the reporting period, the prime cost decreased by 17%, which allowed maintaining a high level of EBITDA margin - 35.7%. In the third quarter, there was a recovery in sales markets, EBITDA showed a 9% increase in relation to the second quarter of this year. We expect the positive dynamics to continue until the end of 2020. The low level of debt burden and active management of the borrowing portfolio provide the Company with a comfortable debt repayment schedule and a solid reserve of liquidity. ”
Financial results
- Revenue 4,572 USD mln (-14.2% YoY)
- EBITDA USD 1,632 mln (-22.8%)
- EBITDA margin 35.7% vs. 39 , 7% in 9M 2019
- Net profit $ 752 mln. (-49.3%)
- Net debt $ 3,420 mln. (-8.9% vs. 31 December 2019)
- Net Debt /EBITDA LTM 1.68x vs. 1.49x as at 31 December 2019
- CAPEX $ 326 million (-7.3%)
Production results
- Iron ore 30.4 million tonnes (+ 1.0%)
- Pellets 20.8 million tonnes (-2.2%)
- HBI /DRI 5.8 million tonnes (-2.4%)
- Pig iron 1.8 million tonnes ( -13.0%)
- Steel 3.7 million tonnes (+ 3.1%)
Key corporate events for the 3rd quarter of 2020
- MGOK began pilot production of premium pellets based on d metallization
- Fitch has affirmed its 'BB +' credit rating with a stable outlook
- A new 'AA + (RU)' credit rating has been obtained with a stable outlook on the national scale from the Russian agency ACRA
- Received a new sustainable development rating from ISS ESG at the level "C-"
- To ensure reserve sources of liquidity, as well as improve the parameters of the borrowing portfolio, the Company has extended or opened new credit lines in Russian and international banks
