6 Mar 2017 07:08
Press release
6 March 2017
NLMK GROUP Q4 AND FY2016 IFRS CONSOLIDATED FINANCIAL RESULTS
NLMK Group, a leading global steel company (MICEX and LSE: NLMK) is pleased to announce an EBITDA margin expansion to 25% and a 9% y-o-y growth in free cash flow to $1.1 bn in 2016
FY2016 highlights
• Revenue totalled $7.64 bn on strong sales volumes
• EBITDA was flat at $1.94 bn
• EBITDA margin expanded to 25% (24% in 2015)
• Capex decreased by 6% to $559 m
• Free cash flow increased by 9% to $1.1 bn
• Net debt was down to $0.69 bn
• Net debt/EBITDA decreased to 0.4х
• 2016 declared dividends were RUB 9.22/per share, or 83% of free cash flow
Q4 2016 highlights
• Revenue grew by 20% YoY to $1.97 bn
• EBITDA grew by 61% YoY to $518 m
• EBITDA margin grew to 26% (+6 p.p. YoY)
• Capex grew to $175 m against the backdrop of the launch of Stoilensky Pelletizing Plant
• Q4 2016 dividends are recommended at RUB 3.38/per share
For EBITDA calculations please refer to Item 5 of the Appendix
NLMK GROUP Q4 AND FY2016 IFRS CONSOLIDATED FINANCIAL RESULTS1
Key highlights
$ m | 2016 | 2015 | YoY | Q4 2016 | Q3 2016 | QoQ | Q4 2015 | YoY |
Sales volumes, '000 t | 15,925 | 15,829 | 1% | 3,635 | 4,220 | -14% | 3,737 | -3% |
Revenue | 7,636 | 8,008 | -5% | 1,965 | 2,225 | -12% | 1,637 | 20% |
EBITDA 2 | 1,941 | 1,948 | 0% | 518 | 673 | -23% | 321 | 61% |
EBITDA margin | 25% | 24% | +1 p.p. | 26% | 30% | -4 p.p. | 20% | +6 p.p. |
Profit for the period 3 | 935 | 967 | -3% | 308 | 385 | -20% | 76 | 4x |
Free cash flow 4 | 1,089 | 997 | 9% | 182 | 474 | -62% | 111 | 64% |
Net debt 5 | 689 | 1,091 | -37% | 689 | 687 | 0% | 1,091 | -37% |
Net debt /EBITDA 5 | 0.36x | 0.56x |
| 0.36x | 0.39x |
| 0.56x |
|
Notes:
1Consolidated financial results are prepared under IFRS. Reporting periods of the Company are 3M, 6M, 9M and 12M. Quarterly figures are derived by computational method. The same assumption applies to calculation of segmental financial results.
2EBITDA is calculated as operating profit before equity share in net losses of associates and other companies accounted for using the equity method of accounting, impairment and write-off of assets. EBITDA calculations are presented in Appendix 5.
3Profit for a period attributable to NLMK shareholders.
4Free cash flow is determined as net cash from operational activity net of interest received, interest paid, capital investment and changes in advances made as part of investment activities. Free cash flow calculations are presented in Appendix 6.
5Net debt is calculated as the sum of LT and ST credits and loans less cash and cash equivalents, as well as ST financial investments at period end.
Net debt / EBITDA is represented by net debt as at the end of the period and EBITDA is presented as Last 12 months EBITDA. Net debt calculations are presented in Appendix 7.
Comment from NLMK Group CFO Grigory Fedorishin:
"NLMK's business model, which is based on operational efficiency, a world-class resource base, and leading positions in key markets, has delivered strong operational and financial results.
"Our proximity to end consumers in the markets where we operate and our well-oiled supply chain from Russia supported high capacity utilization and sales growth to an all-time record 15.9 million tonnes.
"The gradual recovery of prices from the early 2016 bottom along with the increased productivity and operational efficiency emerged as the main factors driving EBITDA margin expansion to 25%.
"In 2016, a pelletizing plant was launched at Stoilensky mine. It will ensure NLMK's self-sufficiency in iron ore and push our steel costs further down.
"Increasing profitability and restrained investment have led to a free cash flow of $1.1 billion and a reduction of net debt to $0.7 billion. This strengthening of the Company's financial standing has enabled NLMK to increase the dividend payout above our Dividend Policy targets."
TELECONFERENCE
NLMK is pleased to invite the investment community to a conference call with the Company management:
Monday, 6 March 2017
· 08:30 am - Great Britain (London)
· 11:30 am - Russia (Moscow)
· 03:30 am - USA (New York)
To join the conference call, participants are welcome to dial:
US number:
1 631 983 3103 (local access) // 1 855 442 0877 (toll free)
UK number:
020 3478 5921 (local access) // 0800 068 0521 (toll free)
Russian number:
+7 499 281 6734 (local access) // 8 800 100 9635 (toll free)
Number for all other countries:
+44 20 3478 5921
To connect to the call, please give the Operator the following code word: NLMK.
* We recommend participants start dialing in 5-10 minutes in advance to avoid waiting.
We recommend participants download the presentation in advance from NLMK's website: www.nlmk.com
MANAGEMENT COMMENTS
Market overview and prices
Global steel consumption grew by 0.5% in 2016, driven mainly by the recovery in demand in developed markets. The drop in steel consumption in Russia decelerated from -8% in 2015 to -4%. In the USA, apparent steel consumption contracted by 5% attributable to sluggish demand from the energy and machine-building sectors against the backdrop of consumer destocking. At the same time, residential construction was displaying a positive trend. In Europe, steel consumption climbed another 2% against the backdrop of continued recovery of demand from machine-building and automotive sectors.
Having hit rock bottom in late 2015 - early 2016, prices for raw materials and steel products recovered in 2016. Prices for iron ore concentrate and coal grew 2- and 2.5-fold, respectively, from the beginning of the year. Average steel product prices changed insignificantly year-on-year, while climbing by 60-90% from the beginning of the year, due mainly to the stabilization of export volumes from China and the increase in raw material prices.
Overview of operating performance
2016 sales hit an all-time high at 15.93 m t (+1%). This growth was associated with an improved structure of sales and strong positions in NLMK's 'home' markets (markets were production is localized).
Q4 2016 sales totalled 3.64 m t, the 3% YoY decline being attributable to a part of shipments being shifted to Q1 2017 due to unfavourable weather conditions at Black Sea ports. For more details on NLMK's operating performance, please refer to NLMK Group's trading update.
Sales markets:
'000 t | Total | Sales markets | ||||
Russia | EU | North America | Middle East | Other | ||
NLMK Group (w/NBH) | 15,928 | 5,945 | 3,269 | 2,302 | 1,621 | 2,791 |
Deliveries to third parties: |
|
|
|
|
|
|
Russian Flat Products | 8,638 | 4,243 | 570 | 363 | 1,324 | 2,136 |
Russian Long Products | 2,807 | 1,702 | 264 | 16 | 248 | 577 |
International subsidiaries and affiliates, incl.: | 4,484 |
| 2,447 | 1,922 | 48 | 67 |
NLMK USA | 1,856 |
|
| 1,856 |
|
|
European rolling assets (NLMK Dansteel and NBH) | 2,628 |
| 2,447 | 66 | 48 | 67 |
'Home' markets accounted for 65% of sales in 2016. Sales to external markets were largely represented by our Russian operations exports to the Middle East and Turkey, to Europe and Latin America.
Capex
Capex in 2016 declined by 6% to $559 m, with maintenance capex totalling $296 m.
Capex in Q4 2016 grew to $175 m (+17% YoY and +69% QoQ) due to the launch of the key Strategy 2017 project, the Pelletizing Plant (see press release). Maintenance capex totalled $102 m, the QoQ growth being associated with equipment overhaul expenditures.
Debt leverage
NLMK's total debt decreased by 15% to $2.27 bn.
Short-term liabilities account for 21% of debt. These are represented by ruble bonds, targeted investment loans and revolving credit lines to finance working capital.
Net debt in 2016 decreased by 37% YoY to $0.69 bn due to the growth of free cash flow.
Net debt/EBITDA at the end of 2016 was 0.4х (0.6х at the end of 2015).
Debt portfolio optimization resulted in the average maturity of the Company's debt being increased from 2.9 years to 3.6 years due to the following measures:
- In June 2016, the Company announced a buyback offer for its outstanding Eurobonds (7-year bonds with a coupon rate of 4.95% for a total of $500 m due in 2019 and 5-year bonds with a coupon rate of 4.45% for a total of $800 m due in 2018). Investors took up the offer for a total of $571 m. The buyback in July 2016 was financed by a new issue of 7-year Eurobonds for a total of $700 m with a coupon rate of 4.5% due in 2023.
- In Q3 2016, NLMK paid off ruble bonds for a total of RUB 15 bn ($232 m) from its own funds.
- In Q4 2016, NLMK paid off $200 out of the $400 m PXF (pre-export finance) loan taken out in 2015 ahead of schedule.
NLMK's financial guarantees for NBH liabilities decreased by 7% YoY in 2016 to $255 m.
Interest payments in 2016 decreased to $104 m (-13% YoY), including $40 m of capitalized interest expenses accounted for as capex.
Dividends
The cash outflow for dividends in 2016 amounted to $583 m, which includes pay-out for Q4 2015, as well as dividends for Q1-Q3 2016.
At a meeting held on 3 March 2017, the NLMK Group Board of Directors recommended shareholders approve dividends for Q4 2016 in the amount of RUB 3.38 per share. The total amount of dividends recommended for Q4 2016 was $347 m (FX rate as the date of recommendation). Taking into consideration the previously paid dividends for Q1-Q3 2016, this represents 83% of the free cash flow and 97% of net profit for 2016.
Change in segmental reporting breakdown
Starting from 12M 2016 statements, NLMK Group is changing the breakdown of its segmental reporting in order to increase the transparency of performance trends at its divisions in Europe and the USA:
- Foreign Rolled Products segment is divided into two segments, NLMK USA and NLMK Dansteel.
- Results of companies previously reflected in the 'Other' segment will now be reflected as part of the main segments.
KEY FINANCIALS
Revenue
2016 revenue contracted by 5% to $7,636 m due to somewhat lower average sales prices. At the same time, 2016 saw an improvement in the sales mix: finished product share in revenue climbed to 67% (+3 p.p. YoY), see Appendix 3.
Q4 2016 revenue increased by 20% YoY (-12% QoQ) due to the growth of prices vs. the Q4 2015 lowest point.
'Home' markets accounted for 70% of the revenue (flat YoY). Operations in external markets accounted for 30% of the revenue, including 8% from sales to the Middle East and Turkey; and 4% from sales to South East Asia.
Cost of sales
Cost of sales in 2016 eased by 8% to $5,074 m, due to the impact of the 10% weakening of the average RUB/$ FX rate YoY; and operational efficiency initiatives (minus $82 m to the 2015 cost base).
Cost of sales in Q4 2016 eased by 7% QoQ, due mainly to the decrease in sales volumes coupled with a spike in raw material prices.
Cash cost per tonne of slabs at the Lipetsk site in 2016 decreased by 5% to $194/t. In Q4 it grew by 14% QoQ to $224/t, which is attributable to the growth of raw material prices.
Operating profit
2016 general and administrative expenses increased by 21% YoY to $316 m. Bonus payments for 2015; and provisions made under the long-term management incentive programme for achieving development strategy KPIs in 2014-2016 were the key factors driving G&A expenses up.
The 12% YoY decrease in commercial expenses to $705 m was associated mainly with the 10% weakening of the average RUB/$ FX rate YoY and a high 2015 base for accruing accelerated depreciation of commercial intangible assets (client base).
2016 operating profit* increased by 7% to $1,489 m against the backdrop of the decrease in costs outstripping and offsetting the drop in sales prices.
Q4 2016 operating profit* spiked by 97% YoY, driven by the widening of spreads between prices for raw materials and finished products; and operational efficiency gains.
* Operating profit before equity share in net losses of associates and other companies accounted for using the equity method of accounting, impairment and write-off of assets
Net profit
2016 net profit eased by 3% YoY to $935 m, which was attributable to the following factors:
- (-) $129 m in negative FX rate differences due to the impact from the strengthening of the RUB/$ FX rate on the Company's assets and liabilities ((+) $110 m in positive FX rate differences in 2015 against the backdrop of the weakening in the RUB FX rate).
- one-off profit in 2015 in 'Profit/loss from investment' line related to the SOGEPA deal and a claim settlement for a total of $55 m.
* Profit for a period attributable to key shareholders
Free cash flow
2016 free cash flow increased by 9% YoY to $1,089 m against the backdrop of operating profit growth and a 6% cut in capex. For calculations, please refer to Item 6 of the Appendix.
2016 operating cash flow increased by 3% YoY to $1,695 m, considering the decrease in working capital at year-end by $34 m: the growth of payables fully offset the growth of inventory.
Q4 2016 operating cash flow increased by 59% YoY (-30% QoQ), driven by profitability growth. In Q4 2016, there was a $68 m cash outflow to replenish working capital associated with the increase in stock on the back of the spike in raw material prices at the end of the year; and the delay in export shipments at ports due to bad weather conditions.
Segmental analysis
Russian Flat Products
$ m | 2016 | 2015 | YoY | Q4 2016 | Q3 2016 | QoQ | Q4 2015 | YoY |
Steel product sales, '000 t, incl.: | 12,688 | 13,029 | -3% | 2,896 | 3,302 | -12% | 3,250 | -11% |
external customers | 8,638 | 9,160 | -6% | 1,928 | 2,287 | -16% | 2,318 | -17% |
semis to NBH | 2,141 | 2,094 | 2% | 484 | 523 | -7% | 456 | 6% |
intersegmental sales | 1,910 | 1,774 | 8% | 481 | 492 | -2% | 476 | 1% |
Revenue, incl.: | 5,586 | 6,076 | -8% | 1,426 | 1,628 | -12% | 1,301 | 10% |
external customers | 4,271 | 4,732 | -10% | 1,091 | 1,257 | -13% | 1,027 | 6% |
intersegmental operations | 1,315 | 1,344 | -2% | 335 | 371 | -10% | 274 | 22% |
EBITDA | 1,342 | 1,583 | -15% | 326 | 476 | -31% | 272 | 20% |
EBITDA margin | 24% | 26% | -2 p.p. | 23% | 29% | -6 p.p. | 21% | +2 p.p. |
Note: hereinafter segment financials are based on unaudited accounts
Sales: reduced by 3% YoY to 12.69 m t, due primarily to the decrease in third-party sales of semi-finished products (including pig iron (-) 44% YoY).
Revenue: reduced by 8% YoY to $5,586 m. The 3-10% drop in average sales prices (taking into account the production & sales cycle) and the 3% reduction in sales volumes were partially offset by the increase in the share of finished product sales to 45% (+3 p.p.).
2016 EBITDA dropped by 15% in response to reduced sales volumes and a narrowing of the spreads between raw materials and finished product prices. These factors were partially offset by operational efficiency gains and an improved sales mix.
Q4 2016 EBITDA increased by 20% YoY. A widening of the price spreads and operational efficiency gains offset the reduction in sales volumes caused by the rescheduling of a part of export sales to Q1 2017 due to unfavourable weather conditions on Black Sea ports.
Russian Long Products
$ m | 2016 | 2015 | YoY | Q4 2016 | Q3 2016 | QoQ | Q4 2015 | YoY |
Steel product sales, '000 t | 2,807 | 2,375 | 18% | 678 | 869 | -22% | 494 | 37% |
Revenue, incl.: | 1,293 | 1,151 | 12% | 366 | 409 | -10% | 209 | 75% |
external customers | 1,020 | 858 | 19% | 271 | 334 | -19% | 141 | 92% |
intersegmental operations | 273 | 293 | -7% | 95 | 75 | 26% | 68 | 41% |
EBITDA | 138 | 49 | 2.8x | 39 | 48 | -19% | (18) | 2.2x |
EBITDA margin | 11% | 4% | +7 p.p. | 11% | 12% | -1 p.p. | -9% | +20 p.p. |
Sales: increased by 18% to 2.81 m t in 2016 (+37% YoY in Q4 2016) driven by strong exports growth which accounted for 39% of total sales vs. 14% in 2015. Q4 sales sequentially decreased due to seasonally lower demand in the Russian market.
Revenue (long product sales to third parties): growth is driven by an increase in volumes and average sales prices YoY.
Revenue (intersegmental operations): sales of scrap to NLMK Lipetsk decreased by 7% against falling average scrap prices.
2016 EBITDA increased 2.8 times YoY to $138 m. Q4 2016 EBITDA was $39 m vs. a loss of $18 m a year earlier, supported by an increase in sales volumes, the widening of spreads between long product and scrap prices, and operational efficiency gains. EBITDA margin grew to 11% in 2016 (+7 p.p. YoY).
Mining Segment
$ m | 2016 | 2015 | YoY | Q4 2016 | Q3 2016 | QoQ | Q4 2015 | YoY |
Iron ore sales, '000 t, incl.: | 17,273 | 17,014 | 2% | 4,345 | 4,636 | -6% | 4,485 | -3% |
sales to Lipetsk plant | 13,081 | 12,380 | 6% | 3,408 | 3,406 | 0% | 3,215 | 6% |
Revenue, incl.: | 597 | 589 | 1% | 175 | 170 | 3% | 145 | 20% |
external customers | 166 | 184 | -10% | 46 | 57 | -20% | 43 | 7% |
intersegmental operations | 431 | 405 | 6% | 129 | 113 | 15% | 103 | 26% |
EBITDA | 318 | 297 | 7% | 95 | 91 | 4% | 83 | 15% |
EBITDA margin | 53% | 50% | +3 p.p. | 54% | 54% | 0 p.p. | 57% | -3 p.p. |
Sales of iron ore increased by 2% YoY in 2016, hitting a record high of 17.27 m t, including 0.24 m t of captive pellet sales. NLMK Lipetsk accounted for 76% of total sales. The Q4 drop in sales was associated with creating a stock of iron ore concentrate to feed into the pelletizing plant.
Revenue: increased by 1% YoY, driven by higher sales. The growth of intragroup sales at the end of the year (pellets) was accompanied with a decrease in revenue from third party iron ore sales. Going forward, the share of third party iron ore sales will continue to decrease. The main factor driving Q4 revenue up was the increase in global iron ore prices (+30%).
2016 EBITDA grew by 7% against the backdrop of higher sales and productivity improvements coming from operational efficiency efforts. The 15% YoY increase in Q4 EBITDA was mainly attributable to the price factor.
NLMK USA
$ m | 2016 | 2015 | YoY | Q4 2016 | Q3 2016 | QoQ | Q4 2015 | YoY |
Steel product sales, '000 t | 1,856 | 1,764 | 5% | 421 | 444 | -5% | 357 | 18% |
Revenue, incl.: | 1,162 | 1,098 | 6% | 282 | 328 | -14% | 199 | 42% |
external customers | 1,162 | 1,098 | 6% | 282 | 328 | -14% | 199 | 42% |
intersegmental operations | - | - | 0% | - | - | 0% | - | 0% |
EBITDA | 178 | (93) | 1.9x | 36 | 75 | -52% | (30) | 1.2x |
EBITDA margin | 15% | -9% | +24 p.p. | 13% | 23% | -10 p.p. | -15% | +28 p.p. |
Sales: increased in 2016 by 5% against the backdrop of stable demand from key consumers, restocking at traders, and imports losing their competitive edge as a result of active trade protection measures. These factors also enables a YoY increase in sales in Q4.
Revenue in 2016 grew by 6% as a result of improved pricing conditions and increased sales.
EBITDA increased to $178 m driven by both widening spreads between Lipetsk slabs prices (which are used as a feedstock) and finished products, and an increase in sales.
NLMK DanSteel and plate sales network
$ m | 2016 | 2015 | YoY | Q4 2016 | Q3 2016 | QoQ | Q4 2015 | YoY |
Steel product sales, '000 t | 481 | 435 | 11% | 121 | 97 | 25% | 111 | 9% |
Revenue, incl.: | 326 | 344 | -5% | 90 | 70 | 28% | 83 | 9% |
external customers | 325 | 343 | -5% | 90 | 70 | 28% | 82 | 9% |
intersegmental operations | 1 | 1 | 8% | 0 | 0 | 33% | 0 | 0% |
EBITDA | 0,3 | (0,7) | >100% | (0.7) | 0.3 | -333% | 0.3 | -333% |
EBITDA margin | 0.1% | -0.2% | 0 p.p. | -0.8% | 0.4% | -1 p.p. | 0.4% | -1 p.p. |
Sales increased by 11% in 2016 due to the recovery of demand from machine-building and wind energy sectors.
Revenue decreased by 5% as a result of a reduction in average sales prices for thick plates. This factor was partially offset by a growth in sales.
EBITDA came back to black as a result of operational efficiency gains.
Associated company (NBH) results
NBH steel product sales increased by 8%, driven by the recovery in demand in Europe and lower competition from imports which became less attractive.
NBH revenue decreased by 4% YoY to $1.2 bn due to the decrease in average sales prices and changes in the sales mix.
The widening of price spreads and operational efficiency gains allowed reducing EBITDA loss in 2016 to(-) $2 m vs. a (-) $92 m loss in 2015.
•
Appendix. Operating and financial results
(1) Sales by product
'000 t | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 |
Pig iron | 41 | 105 | 84 | 135 | 153 |
Slabs | 1,170 | 1,145 | 1,110 | 1,313 | 1,351 |
Thick plates | 121 | 97 | 141 | 121 | 111 |
Hot-rolled steel | 717 | 940 | 896 | 990 | 754 |
Cold-rolled steel | 413 | 527 | 555 | 528 | 435 |
Galvanized steel | 255 | 264 | 267 | 194 | 218 |
Pre-painted steel | 112 | 138 | 119 | 91 | 84 |
Transformer steel | 54 | 55 | 64 | 72 | 74 |
Dynamo steel | 75 | 79 | 73 | 58 | 64 |
Billet | 141 | 193 | 169 | 109 | 117 |
Long products | 472 | 607 | 401 | 456 | 317 |
Metalware | 65 | 69 | 65 | 60 | 60 |
TOTAL | 3,635 | 4,220 | 3,943 | 4,127 | 3,737 |
(2) Sales by region
'000 t | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 |
Russia | 1,357 | 1,714 | 1,327 | 1,548 | 1,413 |
European Union | 774 | 873 | 958 | 819 | 773 |
Middle East, including Turkey | 468 | 321 | 398 | 396 | 336 |
North America | 456 | 567 | 622 | 603 | 454 |
Asia and Oceania | 115 | 152 | 200 | 155 | 210 |
Rest of World | 465 | 593 | 438 | 605 | 550 |
TOTAL | 3,635 | 4,220 | 3,943 | 4,127 | 3,737 |
(3) Revenue by product
$ m | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 |
Revenue | 1,965 | 2,225 | 1,869 | 1,577 | 1,637 |
Semi-finished products | 497 | 537 | 445 | 409 | 468 |
Finished products | 1,277 | 1,511 | 1,298 | 1,029 | 1,010 |
By type of product: |
|
|
|
|
|
Standard products | 547 | 687 | 528 | 431 | 374 |
High value added | 730 | 824 | 770 | 598 | 636 |
By type of rolled product: |
|
|
|
|
|
Flat steel | 1,063 | 1,251 | 1,114 | 898 | 891 |
Long products and metalware | 214 | 260 | 184 | 130 | 120 |
Other operations | 192 | 177 | 127 | 139 | 159 |
(4) Revenue by region
Region | Q4 2016 | Q3 2016 | Q2 2016 | |||
$ m | share | $ m | share | $ m | share | |
Russia | 828 | 42% | 944 | 42% | 720 | 39% |
European Union | 351 | 18% | 354 | 16% | 352 | 19% |
Middle East, including Turkey | 184 | 9% | 148 | 7% | 164 | 9% |
North America | 308 | 16% | 378 | 17% | 360 | 19% |
Asia and Oceania | 68 | 3% | 79 | 4% | 93 | 5% |
Rest of World | 225 | 11% | 322 | 14% | 181 | 10% |
TOTAL | 1,965 | 100% | 2,225 | 100% | 1,869 | 100% |
(5) EBITDA
$ m | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 |
Operating income* | 397.3 | 556.1 | 346.1 | 189.0 | 202.0 |
minus: | - | - | - | - | - |
Depreciation and amortization | (120.5) | (116.6) | (114.0) | (101.2) | (118.8) |
EBITDA | 517.8 | 672.7 | 460.1 | 290.2 | 320.8 |
* Operating profit before equity share in net losses of associates and other companies accounted for using the equity method of accounting, impairment and write-off of assets
(6) Free cash flow
$ m | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 |
Net cash from operating activities | 392.1 | 562.3 | 319.1 | 421.1 | 246.0 |
Interest paid | (19.8) | (21.4) | (10.7) | (31.7) | (7.5) |
Interest received | 15.4 | 8.5 | 8.9 | 3.4 | 19.7 |
Advance VAT payments on imported equipment | (30.6) | 28.4 | - | 2.2 | 2.6 |
Capex | (174.8) | (103.6) | (159.7) | (120.5) | (149.6) |
Free Cash Flow | 182.3 | 474.2 | 157.6 | 274.5 | 111.2 |
(7) Net debt
$ m | 31.12.16 | 30.09.16 | 30.06.16 | 31.03.16 | 31.12.15 |
ST credits and loans | 467.6 | 385.7 | 607.9 | 597.0 | 559.8 |
LT credits and loans | 1,801.1 | 2,112.3 | 2,189.5 | 2,068.9 | 2,116.3 |
Minus: |
|
|
|
|
|
Cash and equivalents | 609.7 | 527.3 | 327.1 | 545.8 | 343.0 |
ST financial investment | 969.7 | 1,283.6 | 1,309.1 | 1,153.1 | 1,242.6 |
Net debt | 689.3 | 687.1 | 1,161.2 | 967.0 | 1,090.5 |
(8) Production of main products
'000 t | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 |
Steel, incl.: | 4,172 | 4,044 | 4,228 | 3,995 | 3,864 |
Steel Segment | 3,319 | 3,163 | 3,301 | 3,202 | 3,255 |
Long Products Segment, incl.: | 735 | 778 | 745 | 634 | 528 |
NLMK Kaluga | 347 | 354 | 342 | 301 | 284 |
Foreign Rolled Products Segment | 118 | 103 | 181 | 158 | 81 |
Rolled products, incl.: | 2,497 | 2,581 | 2,703 | 2,474 | 2,236 |
Flat steel | 1,918 | 2,015 | 2,134 | 2,013 | 1 832 |
Long steel | 579 | 566 | 569 | 461 | 404 |
Coke (6% moisture), incl.: | 1,757 | 1,811 | 1,766 | 1,594 | 1,668 |
NLMK Lipetsk | 652 | 657 | 647 | 652 | 655 |
Altai-Koks | 1,104 | 1,153 | 1,119 | 942 | 1,013 |
(9) Slab sales, including intra-group sales to NLMK Group companies
'000 t | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 |
Sales to 3rd parties, incl.: | 691 | 622 | 444 | 860 | 901 |
Export | 460 | 427 | 253 | 609 | 703 |
Sales to subsidiaries & associates | 915 | 1,015 | 1,262 | 768 | 893 |
Deliveries to NBH | 479 | 523 | 665 | 453 | 450 |
TOTAL | 1,606 | 1,637 | 1,706 | 1,627 | 1,793 |
(10) Export shipments of steel products from Russian assets of the Group to third party consumers*
'000 t | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 |
Semi-finished products | 639 | 724 | 503 | 851 | 910 |
Pig iron | 37 | 104 | 82 | 133 | 150 |
Slabs | 460 | 427 | 253 | 609 | 703 |
Billets | 141 | 193 | 169 | 109 | 56 |
Flat products | 425 | 591 | 678 | 603 | 488 |
HRC | 198 | 313 | 335 | 296 | 227 |
CRC | 110 | 155 | 216 | 192 | 132 |
HDG | 11 | 11 | 12 | 4 | 7 |
Coated | 2 | 3 | 3 | 1 | 1 |
Dynamo | 61 | 64 | 59 | 47 | 50 |
Transformer | 43 | 45 | 53 | 63 | 60 |
Long products | 193 | 135 | 97 | 81 | 22 |
Total | 1,256 | 1,442 | 1,279 | 1,535 | 1,410 |
* Alongside sales volumes to third parties indicated in the table, export shipments of the Russian Flat Products and the Russian Long Products Segments include deliveries to subsidiaries and associated companies of the Group.