Super4 Apr 2023 16:44
The sale of its North American assets will release cash, and despite sanctions, Evraz remains an endurable, well-structured, low debt, free cash flow dividend-oriented machine. In its last published financials, from August 2022, Evraz maintained strong revenue growth (31% year-on-year) to USD8bn, a performance buoyed by coal sales, as the energy crisis affected the price of commodities associated with heating and electricity production. EBITDA was up 19% year-on-year to USD2.5bn with USD1.7bn in working capital and net debt still only 0.6x at USD3.2bn.
The company still works as a business, despite the geopolitical mood music, and although a speculative investment, given its current parlous state of affairs it’s not beyond the realms of possibility the the Russian steelmaker may return over the longer-term to being a sustainable, dividend-producing entity.