Evraz posts best earnings in a decade

(Sharecast News) - Evraz reported "robust" free cash flow of $1.94bn in its annual results on Thursday, rising from $1.32bn year-on-year.The FTSE 100 Russia-focussed mining giant's consolidated revenue was ahead 18.6% at $12.84bn, while its profit from operations surged 77.6% to $3.53bn.It reported a continued reduction in net debt over the year, to $3.6bn from $4bn, and the company claimed a total EBITDA effect from its cost-cutting and customer focus initiatives of $340m for the year.That consolidated EBITDA totalled $3.78bn, up 43.9% from the $2.62bn it reported in 2017, driving its EBITDA margin to 29.4% from 24.2%, which the board put down to "strong" market conditions and a number of improvement initiatives.Net profit surged to $2.47bn from $759m a year earlier.Looking at its costs, Evraz said the cash cost of slabs decreased to $242 per tonne from $247 per tonne in 2017, which was primarily due to depreciation of the rouble and higher sales volumes.Cash costs of washed coking coal increased to $47 per tonne, from $42 per tonne year-on-year, which was blamed on more complex geological conditions, a rise in auxiliary materials prices, and the increased involvement of contractors.The company's cash costs of iron ore products increased slightly to $37 per tonne from $36 per tonne, amid lower sales volumes of Evrazruda.Evraz declared an interim dividend of $577.34m, or 40 US cents per share, which it said reflected its confidence in its financial position and outlook."In 2018, Evraz delivered robust growth due to favourable market conditions and ongoing efficiency and cost initiatives," said chief executive officer Alexander Frolov."The group generated EBITDA of $3.78bn during the reporting period - its highest level since 2008 - which made it possible to pay dividends of $1.6bn."Frolov said Evraz remained focused on implementing its efficiency improvement programme to the amount of 3% of its cost base, the effect from which totalled $340m in 2018."Evraz believes that its low net debt and superior cost base will help to withstand any market downturns, thereby helping the business to develop sustainably." Evraz