EVRAZ plc (LON:EVR) has today announced its audited results for the year ended 31 December 2019.
FY 2019 HIGHLIGHTS
• Healthy free cash flow of US$1,456 million (FY2018: US$1,940 million)
• Continued reduction in net debt: US$3.4 billion (FY2018: US$3.6 billion)
• Total EBITDA effect from cost-cutting and customer focus initiatives of US$407 million in 2019
• Consolidated EBITDA of US$2,601 million, down 31.1% from US$3,777 million in FY2018, EBITDA margin declined to 21.8% from 29.4% due to lower vanadium and coal product prices as well combined higher expenses
• Net profit declined to US$365 million vs. US$2,470 million in FY2018
• Cash-costs:
o cash cost of slabs increased to US$236/t from US$225/t in FY2018 following change in blast furnace charge mix at EVRAZ ZSMK as well as due to the higher prices for raw materials and increased salary expenses
o cash costs of coal concentrate decreased to US$35/t (FY2018: US$47/t) as a result of increased mining volumes
o cash costs of iron ore products increased to US$41/t (FY2018: US$37/t) amid higher maintenance CAPEX as well as higher costs
• An interim dividend of US$580.8 million (US$0.40 per share) has been declared, reflecting the Board’s confidence in the Group’s financial position and outlook.
FINANCIAL HIGHLIGHTS
| (US$ million) | FY2019 | FY2018 | Change,% |
| Consolidated revenue | 11,905 | 12,836 | (7.3) |
| Profit from operations | 1,217 | 3,528 | (65.5) |
| Consolidated EBITDA1 | 2,601 | 3,777 | (31.1) |
| Net profit | 365 | 2,470 | (85.2) |
| Earnings per share, basic (US$) | 0.23 | 1.67 | (86.2) |
| Net cash flows from operating activities | 2,430 | 2,633 | (7.7) |
| CAPEX2 | 762 | 527 | 44.6 |
| 31 December 2019 | 31 December 2018 | ||
| Net debt3 | 3,445 | 3,571 | (3.5) |
| Total assets | 9,847 | 9,373 | 5.1 |
1 See p.251 of EVRAZ plc Annual Report 2019 for the definition of EBITDA.
2 Including payments on deferred terms recognised in financing activities and non-cash transactions.
3 See p.251 of EVRAZ plc Annual Report 2019 for the calculation of net debt.
CONFERENCE CALL
EVRAZ has released its financial results for the year ended 31 December 2019 on Thursday, 27 February 2020.
A conference call to discuss the results, hosted by Alexander Frolov, CEO, and Nikolay Ivanov, CFO, will be held on Thursday, 27 February 2020, at:
2 pm (London time)
5 pm (Moscow time)
9 am (New York time)
To join the call, please dial:
| +44 (0) 330 336 9411 | UK |
| +7 495 646 9190 | Russia |
| +1 929-477-0448 | US |
Conference ID: 2575792
To avoid any technical inconvenience, it is recommended that participants dial in 10 minutes before the start of the call.
The FY2019 results presentation will be available on the Group’s website, www.evraz.com, on Thursday, 27 February 2020, at the following link:
https://www.evraz.com/en/investors/reports-and-results/financial-results
An MP3 recording will be available on Friday, 28 February 2020, at the following link:
https://www.evraz.com/en/investors/reports-and-results/financial-results/
EVRAZ Chief Executive Officer, Alexander Frolov, commented
“In 2019, global steel and commodity markets were not as favourable as they were in 2018. Steel prices have fallen as a result of excess supply in an environment of limited end-use demand. Global coal and vanadium markets returned to supply-demand equilibrium. Despite the market headwinds, EVRAZ was able to deliver resilient results with EBITDA reaching US$2,601 million and EBITDA margin reached 22% in 2019.
Retention of our low-cost and market leadership positions remain very important for EVRAZ. During the reporting period, the efficiency improvement programme delivered an EBITDA effect of US$407 million from customer focus and cost-cutting initiatives.
In 2020, EVRAZ will continue to make significant efforts to improve safety and other vitally important areas of sustainable development. The Group has also set ambitious production targets for the year that should help it to reach solid results despite potential market headwinds.”
