Evraz earnings drop as crisis cuts prices
Evraz
80.89p
17:30 11/04/24
Evraz's first-half earnings fell 28% as the steel and mining company's prices fell during the Covid-19 crisis.
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Earnings before interest, tax, depreciation and amortisation dropped to $1.07bn (£800m) in the six months to the end of June from $1.48bn as revenue fell 19% to $4.98bn.
The FTSE 100 company declared an interim dividend of 20 cents a share, which it said reflected the board's confidence in the company's financial position and outlook.
Profit was reduced by lower prices for steel, vanadium and coking coal and weaker demand for tubular and flat-rolled steel in the US. Net debt increased to $3.73bn at the end of June from $3.45bn in December.
Chief Executive Alexander Frolov said: "The first half of 2020 was dominated by the global fight against the Covid-19 pandemic. The restrictive measures imposed by the governments of various countries have had a significant impact on the level of consumption of steel products around the world. Prices have reflected this situation, dropping sharply in comparison with the first half of 2019."
Selling and distribution costs fell 5.6% to $421m. Pretax profit increased 1.4% as the company recorded a net gain from foreign exchange movements of $515m from a year earlier. Cost cuts and productivity initiatives helped boost earnings by $251m, the company said.
The company said it would aim to keep production at full capacity in the second half, maximise sales in Russia and find further cost savings.