PAO Severstal: Severstal reports Q3 2021 financial and operational results
PAO Severstal (SVST)
Severstal reports Q3 2021 financial and operational results
- EBITDA margin was 54%; EBITDA grew 5% and FCF grew 6% qoq -
Moscow, Russia - 18 October 2021 - PAO Severstal (MOEX: CHMF; LSE: SVST), one of the world's leading steel and steel-related mining companies, increased its revenue by 9% qoq to $3,206 mln, EBITDA reached $1,723 mln (+5% qoq), EBITDA margin amounted to 54% (-2 ppts qoq).
KEY CONSOLIDATED OPERATIONAL AND FINANCIAL RESULTS
Notes:
Q3 2021 vs. Q2 2021 ANALYSIS:
Consolidated operational results
Consolidated financial results
9M 2021 vs. 9M 2020 ANALYSIS:
Consolidated operational results
Consolidated financial results
Financial position
Health and safety performance
DIVIDEND
MARKET UPDATE AND OUTLOOK
Alexander Shevelev, CEO of Severstal Management, commented:
"We continue to develop our response to the continuing issues with the COVID-19 pandemic. In our aim to ensure a safe environment in the workplace for our employees and contractors we continue to encourage our staff to get vaccinated. Today more than 65% of them have already been vaccinated. Also we have successfully achieved our internal target of having employees with immunity through vaccination or antibodies of more than 80% by the end of the summer thus creating a safer environment for everyone. We also continue to focus on injury prevention. LTIFR for our staff declined in 9m 2021 by 4% to 0.68. However, the combined LTIFR for both our staff and contractors grew in Q3 2021 to 0.88 and regrettably we had two fatalities in the reporting quarter in Vorkutaugol. We conducted an investigation of each of these cases, and took actions to prevent similar incidents in the future. In particular, we strengthened control over compliance with the requirements of mine passports, as well as an intensified focus on the process of assessing and training of our operations managers in health and safety. In Q3 2021, we saw first signs of a normalisation in the steel market. Iron ore prices fell by almost $100/t from all-time maximums due to a decrease in the Chinese demand, as China limits steel output. In line with our expectations, spot steel prices also declined from the record level of Q2. The semi-conductor shortage pushed automotive output down in Europe which led to lower steel demand and declining lead times from steel mills, resulting in supply and demand being in balance. The introduction of export duties in Russia caused domestic HRC price to fall to a level below export parity, net of duty. However, the growth in sales coupled with higher average selling prices (due to the lag between spot prices and actual prices) pushed the Company's financial results to new records. Revenue grew by 9% qoq to $3.2bn and EBITDA rose by 5% to $1.7bn. Continuous focus on effective management of working capital enabled us to reach a record FCF of almost $1bn (+6% qoq). Net debt/EBITDA ratio declined to 0.29. Severstal's strong performance in Q3 2021 and financial strength of the company help the Board to recommend a dividend of 85.93 roubles per share for Q3 2021."
SEGMENTS PERFORMANCE
Severstal Russian Steel (RSD)
Notes:
Severstal Resources
NOTES
A conference call on Q3 2021 and 9m 2021 results for investors and analysts hosted by Alexey Kulichenko, Chief Financial Officer, will be held on 18 October 2021 at 12.00 (London)/ 14.00 (Moscow).
To join the webcast (with registration form) please follow the link: https://mm.closir.com/slides?id=314887 *We recommend that participants start dialling in 10 minutes prior to ensure a timely start of the conference call. To join the conference call, please dial: United Kingdom Number: US Number: Russian Dial: Participant code: 314887
ANNEX
1. Consolidates sales by product
2. Russian Steel Division sales by product
3. Russian Steel Division sales by destination
4. Russian Steel Division average prices
5. Resource Division sales
6. Vorkutaugol operating highlights
7. Karelsky Okatysh iron ore pellets production and sales volumes
8. Iron ore concentrate sales volumes
For further information, please contact:
Severstal Investor Relations Vladimir Zaluzhsky, Nikita Klimantov T: +7 (495) 926-77-66
Severstal Public Relations Anastasia Mishanina T: +7 (495) 926-77-66
Severstal's financial communications agent - Hudson Sandler Andrew Leach / Emily Dillon T: +44 (0) 20 7796 4133
*** PАО Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, Latvia and Poland. Severstal is listed on MOEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $6,870 mln and EBITDA of $2,422 mln in 2020. Severstal's crude steel production in 2020 reached 11.3 mln tonnes. www.severstal.com
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ISIN: | US8181503025 |
Category Code: | QRT |
TIDM: | SVST |
LEI Code: | 213800OKDPTV6K4ONO53 |
OAM Categories: | 3.1. Additional regulated information required to be disclosed under the laws of a Member State |
Sequence No.: | 124519 |
EQS News ID: | 1241309 |
End of Announcement | EQS News Service |
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